SPX: Stocks Knocked with S&P 500 Down 1% as Fed Skips Hike but Not Done Raising

The Federal Reserve paused its hike campaign but Jay Powell and co are largely in favor of at least a hike more this year.

• The S&P 500 (SPX) tumbled 1% after the Fed’s latest update showed policymakers aren’t too worried over recession prospects and will keep rates higher for longer. While they did skip a hike yesterday, central bank officials projected at least one interest-rate bump this year. And… wait for it…
• The Fed is deep into the “soft landing” camp as Fed boss Jay Powell penciled in fewer rate cuts for the next two years. Wall Street was quick to speculate that the first rate trim could be coming in the fourth quarter of 2024. The forecast was pushed back from a prior estimation of a slash expected in the second quarter.
• On the news, the falling S&P 500 was joined by an even bigger loser – the Nasdaq Composite gave up 1.5% on Wednesday. The blue-chip Dow Jones was also in disbelief and retreated some 77 points, or 0.2%, on the day. Futures early on Thursday moved further in the red, pointing to extended losses at the opening bell in New York.