BI: Markets Rally One Day Ahead Of Huge Fed Meeting: Here's What You Need To Know
Markets have now completely erased yesterday's post-jobs number swoon.
But first, the scoreboard:
Dow: +45
S&P 500: +6
NASDAQ: +16.24
And now, the closing bell:
Actual newsflow was very thin today. Markets were generally higher overseas, as the yen -- which is the new must-watch currency -- eased back a bit from 15-year highs.
The day was mostly consumed with talk about the upcoming Fed meeting, what options the central bank has, and whether it would soon fire off one or more of its bullets. Going into today, the dominant thinking was that yes, the Fed would make a move. Goldman Sachs is predicting "baby steps," in the form of confirmation that proceeds from MBS sales would be reinvested.
But not everyone's so sure, and at least a few firms expect the Fed to hold pat and wait for more evidence of actual evidence of economic deterioration, rather than just a slowing of the economy, which is what we have now. Some see meaningful risk that investors are expecting too much and will be disappointed.
Besides the Fed talk, there was considerable discussion today of stagflation -- seemingly out of nowhere -- and how the rise of food prices goes against the slowing seen in the labor market.
Beyond equities, markets were generally pretty quiet today on the commodity and currency fronts.
