Let’s see how certain “big” news events affected stocks lately.
President Donald Trump doubled down on threats to impose tariffs on Chinese imports. Stocks took off. He then lashed out at close ally Canadian Prime Minister Justin Trudeau. Stocks did nothing. He touted great progress at his historic summit meeting with North Korean dictator Kim Jong in Singapore. Stocks sold off modestly.
Most importantly, the Federal Reserve raised the federal funds rate ¼ point Wednesday and said it was likely there were going to be four, not three, rate hikes this year. How did investors react to this “seismic” event?
Yawwwwwwwn. From Tuesday’s close through Thursday’s close, the Dow Jones Industrial Average fell a couple of hundred points and the S&P 500 has basically done nothing.
So, is the market finally free from the Fed?