Friends

Higher oil prices sent stocks lower at the open and a deterioration of the bond market after the Fed decision sent stocks tumbling lower still in the last hour of trading. As we expected, the Fed left rates unchanged, but the new Fed Chair insists that they are committed to get inflation down to 2%. Well, if they are committed to getting inflation to 2%, he better start raising interest rates because it doesn't appear likely it’s going there on its own. We didn’t believe that the Fed would raise interest rates today, and I was leaning toward no rate hikes for the year, but given the Fed Chair's stance, and the bond markets response, I don’t know how they don’t hike rates in September. Of course, we will see.

As for stocks, by the close the Dow Jones Industrial Average was down 1,153 points to finish the day at 51,594. The S&P 500 was down 112 points to close at 7,316. The Nasdaq Composite Index was down 433 points to close at 24,442. Gold was up $27 to trade at $4,066 per ounce, while oil was up $5.61 to trade at $84.87 per barrel WTI.

Well, we get earnings releases from Microsoft and Meta after the close. But you all know that I take a lot of my cues from the bond market, and the bond market is making a lot of noise right now.

Have a nice evening everyone.

Jim