Stocks Finish Lower Following Fed Hawkish Tone

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map after stocks finish lower following Fed hawkish tone. 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:

Stocks hit session highs after Fed raises rates and upgrades economic outlook

Fed officials also released their projections for the federal funds rate, which remained unchanged for 2018. The central bank, however, raised its 2019 forecast, saying it sees the benchmark rate at 2.9 percent, up from a 2.7 percent projection released in December.

The S&P 500 (SPY) finished lower by -0.18% today as stocks finish lower following Fed hawkish tone. Sector decliners led advancers by 7 to 3 as shown in the sector graph below. Consumer staples (XLP) -1.24% led decliners to the downside. Consumer discretionary (XLY), financials (XLF), healthcare (XLV), real estate (XLRE), technology (XLK) and utilities (XLU) each closed lower by less than 1%. Energy (XLE) +2.62% and materials (XLB) +1.13% led advancers. Industrials (XLI) had a minor gain of less than 1%.

The Dow Jones index retreated -44 points (-0.18%) to end at 24,682. The Nasdaq gave back -19 points (-0.26%) to settle at 7,345.

Stocks ended lower but hit session highs when Fed Chair Powell was speaking at his news conference. The FOMC raised interest rates by 0.25% and raised their GDP forecast. Fed Chair Powell was positive about the economic outlook, job gains and unemployment rate. The 30 yr bond yield hit a high of 2.90% before coming down. However, Powell struck a hawkish tone by saying Trump’s trade policy has become a growing concern among Federal Reserve members.

Some notable S&P movers…

  • AAPL -2.27%
  • XOM +1.42%
  • CVX +2.22%
  • PG -1.62%
  • UNH -1.75%
  • CAT +1.13%
  • V -1.35%

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.

3/21/18

S&P 500 Sector Graph

Stocks Finish Lower Following Fed Hawkish Tone

S&P 500 (SPY)

Stocks Finish Lower Following Fed Hawkish Tone

Consumer Discretionary (XLY)

Stocks Finish Lower Following Fed Hawkish Tone

Consumer Staples (XLP)

Stocks Finish Lower Following Fed Hawkish Tone

Energy (XLE)

Stocks Finish Lower Following Fed Hawkish Tone

Financials (XLF)

Stocks Finish Lower Following Fed Hawkish Tone

Real Estate (XLRE)

Stocks Finish Lower Following Fed Hawkish Tone

Healthcare (XLV)

Stocks Finish Lower Following Fed Hawkish Tone

Industrials (XLI)

Stocks Finish Lower Following Fed Hawkish Tone

Materials (XLB)

Stocks Finish Lower Following Fed Hawkish Tone

Technology (XLK)

Stocks Finish Lower Following Fed Hawkish Tone

Utilities (XLU)

Stocks Finish Lower Following Fed Hawkish Tone

S&P 500 Sector Heat Map

Stocks Finish Lower Following Fed Hawkish Tone

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