Market Volatile and Closes Flat
Markets were understandably subdued going into the FOMC decision, with treasury volumes at 60% of normal, and not jumping noticeably into and out of the meeting. The treasury curve closed a touch steeper, with short-dated bonds staying volatile as the interest rate outlook becomes fully ‘data dependent’.
Equities tried their best to pull out another risk-on day with the DJIA pulling out its 12th straight day of gains, while the S&P 500 saw an intra-day round-trip which saw the index close the day flat. Gains in communication services (Alphabet) helped to offset losses in other mega-tech names, which saw accelerated sell-offs towards the end of Powell’s press conference.
