The major stock indices are closing at session highs after the Fed raise rates by 25 basis points and said that they expect seven hikes in 2022 along with a reduction of the balance sheet. The Fed laid all the cards on the table and the only explanation is that the market is happy with that decision (at least for now).
- The Dow close higher for the third straight day
- consumer discretionary's rose 3.4%
- technology rose 3.3%
- financials rose 2.8%
- communications rose 2.8%
On the downside,
- energy fell -0.5%
- utilities fell -0.2% consumer staples rose 0.1%
For the day, the major indices are all sharply higher:
- Dow industrial average rose 518.74 points or 1.55% at 34063.12
- S&P index up 95.49 points or 2.24% at 4357.92
- NASDAQ index up 487.94 points or 3.77% at 13436.56
- Russell 2000 rose 61.75 points or 3.14% at 2030.72.
Of note technically, the S&P index moved up close to its 200 hour moving average at 4360.54. The high price today reached 4358.90. On March 3, the price moved up to test that moving average only to find sellers leaning against the level. That makes the open and trading day tomorrow a key event technically for the broad market index. Move above and stay above will be more bullish.
