Investors Flock Toward Safety Following Fed Rate Hike

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors flock toward safety following Fed rate hike. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow futures edge higher ahead of Federal Reserve rate decision

U.S. stock index futures were slightly higher on Wednesday morning, as traders eagerly awaited the Federal Reserve’s latest monetary policy decision. At around 3:50 a.m. ET, Dow futures were 126 points higher, indicating a positive open of more than 42 points. Futures on the S&P 500 and Nasdaq were seen little changed from the previous session.

The S&P 500 (SPY) dove -1.54% today. All 11 sectors finished in the red as shown below in the sector graph. Communication services (XLC) led markets down with a -2.14% decline. Consumer discretionary (XLY), energy (XLE), financials (XLF), healthcare (XLV), industrials (XLI), materials (XLB) and technology (XLK) each decreased by more than 1%. Consumer staples (XLP), real estate (XLRE) and utilities (XLU) each fell less than 1%.

The Dow Jones index gave back 351 points (-1.49%) to close at 23,323. The Nasdaq finished the worst, dropping 147 points (-2.17%) to settle at 6,636.

Investors Flock Toward Safety Following Fed Rate Hike

All 3 major indexes hit new YTD lows as the Federal Reserve continued to raise interest rates. The Dow had an earlier gain of 381 points only to give it up and close 351 points lower after the Fed announcement. Markets continued lower after the FOMC failed to remove language in its statement that would mention a slower route to rising rates.

Key Takeaways…

I took the following CNBC screenshots this morning regards global growth fears, where are the buyers? and Fed flexibility:

Investors Flock Toward Safety Following Fed Rate Hike

Investors Flock Toward Safety Following Fed Rate Hike

Investors Flock Toward Safety Following Fed Rate Hike

Notable S&P Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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12/19/18

S&P 500 Sector Graph

Investors Flock Toward Safety Following Fed Rate Hike

S&P 500 (SPY)

Investors Flock Toward Safety Following Fed Rate Hike

Communication Services (XLC)

Investors Flock Toward Safety Following Fed Rate Hike

Consumer Discretionary (XLY)

Investors Flock Toward Safety Following Fed Rate Hike

Consumer Staples (XLP)

Investors Flock Toward Safety Following Fed Rate Hike

Energy (XLE)

Investors Flock Toward Safety Following Fed Rate Hike

Financials (XLF)

Investors Flock Toward Safety Following Fed Rate Hike

Real Estate (XLRE)

Investors Flock Toward Safety Following Fed Rate Hike

Healthcare (XLV)

Investors Flock Toward Safety Following Fed Rate Hike

Industrials (XLI)

Investors Flock Toward Safety Following Fed Rate Hike

Materials (XLB)

Investors Flock Toward Safety Following Fed Rate Hike

Technology (XLK)

Investors Flock Toward Safety Following Fed Rate Hike

Utilities (XLU)

Investors Flock Toward Safety Following Fed Rate Hike

S&P 500 Sector Heat Map

Investors Flock Toward Safety Following Fed Rate Hike

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