Daily market review

The day's trading was lackluster as investors waited for the FOMC policy decision and Fed Chair Powell's press conference. The indices remained flat in the morning but closed lower by the end of the day. The FOMC voted to raise the target range for the fed funds rate by 25 basis points, which initially had a positive effect on the stock market. However, during Powell's speech, the market reacted negatively, with broad-based selling interest causing a decline in stock prices. Powell did not appear particularly hawkish or dovish in his commentary but did express a lack of confidence in the outlook. Bank stocks experienced renewed selling pressure, with losses compounding for most stocks. All 11 S&P 500 sectors closed with sizable losses. Treasuries saw gains across the curve, and the U.S. Dollar Index fell. Economic data for the day included a rise in the weekly MBA Mortgage Application Index and a draw in the weekly EIA Crude Oil Inventories. Economic data expected on Thursday includes weekly initial claims, continuing claims, and Q4 current account balance, among others.

The Dow, Nasdaq, and S&P 500 all experienced declines, with the Dow falling by 180.79 points, the Nasdaq falling by 27.63 points, and the S&P 500 falling by 14.96 points. The 10-year note increased by 31/32 to reach a rate of 3.50. The NYSE had more declining companies than advancing ones, with 2134 companies declining and 711 advancing, while the volume of shares traded was 1.0 billion. On the Nasdaq, 3187 companies declined, while 1235 advanced, with a higher volume of shares traded at 4.9 billion. Real Estate, Communication Services, Utilities, and Financials were all identified as weak industries, while no industries were classified as strong.