It was good news for the equity markets today from the Fed. It was highly volatile for a while before the consensus was established that interest rates will not be tampered with for quite some time. And despite reporting that bond buying will end in October, the markets cheered the hints on interest rates.
There are still some things on the horizon this week that may cause concern, notably the vote in my own country of birth, Scotland. If YES goes through we may see additional volatility. But I have to be honest and say that I do not know when the outcome will be known. It may be Monday morning before the markets get a chance to react to the outcome.
U.S. stocks rose on Wednesday, with the Dow ending at a record and the S&P 500 back above 2,000, after the Federal Reserve said it was nearing the end of its asset purchases and reiterated it would not hike interest rates for a ‘considerable’ period.
In its statement released after its two-day meeting, the Fed left largely intact key provisions and cut its bond buying down to $15 billion a month, while indicating the asset purchases would end altogether in October.
Other economic data Wednesday had a measure of confidence among home builders rose to its highest level since 2005.
The Consumer Price Index declined 0.2 percent last month, while prices excluding food and energy costs held unchanged.
Scotland independence vote
Earnings: Oracle, Rite-Aid, IHS, Tibco, RedHat
Alibaba IPO pricing
8:30 a.m.: Initial claims
8:30 a.m.: Housing starts
10:00 a.m.: Philadelphia Fed survey
News Sources: CNN Money & CNBC