Volatility on a Fed announcement day continued in a big way even though investors got exactly what was predicted, a 0.25% interest rate hike.
The rally from premarket trading continued off the opening bell and did not find resistance until it surpassed last week’s high (4326.75), reaching 4339.75. Perhaps the report of an earthquake in Japan, rumblings on the validity of the peace accord in Ukraine, and some good old profit taking instigated a retreat ahead of the actual announcement.
At the onset, the bears seized on every word that came out of Powell and inflicted pain on the longs. However, just ahead of the premarket low, the bulls made a stand and the index sharply reversed course.
Heading into the final hour, the index was back in the green by nearly 50 handles and caught a relentless bid in the final hour. Not only did the index make a new intraday high, but it also made it by over 10 handles.
For the session, the index added 96 handles to close at 4358. That makes a two-day gain of nearly 200 handles.
Nvidia Corp (NASDAQ: NVDA) was the biggest gainer of the top components for the second day in a row. For the session, it gained $15.23 or 6.6% to close at $244.96.
That was nearly three times the cash index’s gain of 2.24%.
The one and only loser, therefore the biggest, of the top components was Johnson & Johnson (NYSE: JNJ). The issue snapped a five-day win streak by declining $1.62 or 0.92% to close at $174.52.
Wednesday’s With Wedbush: Alicia Reese, Equity Analyst For Media And Entertainment At Wedbush Securities
Reese joined the broadcast to discuss issues that may be immune to a recession and benefit from the “reopening” trade. Read more here.