Dow Jones 10584.37 -61.05
NASDAQ 2511.71 -112.81
The Nasdaq fell to 2511 -16-months low- after the Fed left short-term rates unchanged at its policy-setting meeting.. indication being that risks are now weighted toward conditions that may generate economic weakness in the future...Nasdaq fell below its previous low of the year -set on Nov. 30 - by about 14 points...
All techs rallying before the Fed's decision were hammered afterwards...
Here are some analysts' comments about the Fed's decision and the subsequent bloodbath:
"There was some disappointment that the Fed didn't move [right away]," said Alan Skrainka, equity strategist at Edward Jones.
Miller, Tabak & Co.'s Tony Crescenzi: "In the equity market, where any possibility of stability rests squarely with the hope that current gloomy economic realities might turn, the Fed's ease bias does little to spark investors to believe that economic realities will indeed change...Only a rate cut or actual improvements in the economy could prompt the kind of confidence [needed]. The Fed missed an opportunity Tuesday to provide stability to both the economy and the markets -- which have deteriorated rapidly recently..."
David Sloan, senior economist at 4Cast said, "I'm not astounded by their statement," and that he expects the Fed to ease in January and believes Tuesday's Fed statement confirms it..."Unless we get some shocking data, which is unlikely, a Fed ease [at the next meeting] is pretty much a done deal...The market had been factoring in a rate cut at the January meeting, regardless of whether the Fed would hold on to a neutral stance or an "ease" bias..."
Ian Shepherdson, chief economist at High Frequency Economics who noted that the word "recession" was absent from the entire statement said, "This is not an accident; the Fed does not want to appear alarmist...We think this statement represents a compromise between the hawks and doves, and drafting it was probably a tortuous process."
Quotations from CBS MarketWatch...
NASDAQ 2511.71 -112.81
The Nasdaq fell to 2511 -16-months low- after the Fed left short-term rates unchanged at its policy-setting meeting.. indication being that risks are now weighted toward conditions that may generate economic weakness in the future...Nasdaq fell below its previous low of the year -set on Nov. 30 - by about 14 points...
All techs rallying before the Fed's decision were hammered afterwards...
Here are some analysts' comments about the Fed's decision and the subsequent bloodbath:
"There was some disappointment that the Fed didn't move [right away]," said Alan Skrainka, equity strategist at Edward Jones.
Miller, Tabak & Co.'s Tony Crescenzi: "In the equity market, where any possibility of stability rests squarely with the hope that current gloomy economic realities might turn, the Fed's ease bias does little to spark investors to believe that economic realities will indeed change...Only a rate cut or actual improvements in the economy could prompt the kind of confidence [needed]. The Fed missed an opportunity Tuesday to provide stability to both the economy and the markets -- which have deteriorated rapidly recently..."
David Sloan, senior economist at 4Cast said, "I'm not astounded by their statement," and that he expects the Fed to ease in January and believes Tuesday's Fed statement confirms it..."Unless we get some shocking data, which is unlikely, a Fed ease [at the next meeting] is pretty much a done deal...The market had been factoring in a rate cut at the January meeting, regardless of whether the Fed would hold on to a neutral stance or an "ease" bias..."
Ian Shepherdson, chief economist at High Frequency Economics who noted that the word "recession" was absent from the entire statement said, "This is not an accident; the Fed does not want to appear alarmist...We think this statement represents a compromise between the hawks and doves, and drafting it was probably a tortuous process."
Quotations from CBS MarketWatch...
