Markets tend to moves higher on Fed minutes days, even if the news isn’t all that positive. It’s all about convincing investors that the FOMC has their best interests at heart — that all they’re worried about is making sure that stocks continue to rally.
Today’s session is slightly complicated, then, by ADP employment which came in much higher than expected: 263K versus 175K. Theoretically, this puts pressure on the FOMC to raise rates and/or trim their balance sheet faster than anticipated. But, central banks have many tools at their disposal to ensure that the complication doesn’t become a problem.
Can the Fed spin a hawkish set of minutes into something positive for stocks?
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