{"id":40552,"date":"2023-07-26T03:11:38","date_gmt":"2023-07-26T07:11:38","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/its-the-late-day-selloff-in-stocks-that-characterizes-fed-days-under-powell\/"},"modified":"2023-07-26T03:11:40","modified_gmt":"2023-07-26T07:11:40","slug":"its-the-late-day-selloff-in-stocks-that-characterizes-fed-days-under-powell","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=40552","title":{"rendered":"It\u2019s the \u2018late-day selloff\u2019 in stocks that characterizes Fed days under Powell"},"content":{"rendered":"
\n

Call it the Powell gut punch.<\/p>\n

The stock market lately has been known to stumble on Federal Reserve rate-decision days under Chairman Jerome Powell.<\/p>\n

It eked out a gain in June after the Fed\u2019s decision to \u201cskip\u201d a rate hike for the first time in over a year. But the S&P 500 index
\n SPX,
\n +0.28%<\/bg-quote>
\n previously closed lower five out of the past six Fed decision days.<\/p>\n

\n

Ahead of Wednesday\u2019s rate decision, a new chart from Bespoke Investment Group shows how \u201cthe late-day selloff is really what has characterized Powell Fed Days\u201d when compared with past top U.S. central bankers.<\/p>\n

<\/p>\n
<\/p>\n<\/figure><\/div>\n

Stocks looked particularly weak under Powell in the post-meeting stretch, which includes an afternoon press briefing starting at 2:30 p.m. Eastern that concludes before the 4 p.m. Eastern closing bell. <\/p>\n

Powell has been using recent post-meeting briefings to push back on investor hopes for rate cuts, while also saying rates will likely remain high for some time, to help drive inflation down to the central bank\u2019s 2% yearly target.<\/p>\n

Read<\/strong>: Everyone thinks the Fed\u2019s rate hike this week will be the final one \u2014 except the Fed<\/p>\n

Bespoke data also shows the S&P 500\u2019s weaker overall performance on Fed days under Powell when compared with three prior central-bank heads since 1994, when the Fed began announcing policy decisions on the same day as meetings.<\/p>\n

The rally in stocks in 2023 largely came as a surprise, with the year starting out with a U.S. recession viewed as pretty likely, due in large part to dramatic Fed rate hikes that have made borrowing more costly and credit harder to come by.<\/p>\n

See<\/strong>: Morgan Stanley\u2019s Mike Wilson admits \u2018we were wrong\u2019 about 2023 stock-market rally, but refuses to throw in the towel<\/p>\n

The S&P 500 is 19% higher on the year through Tuesday, according to FactSet. The Dow Jones Industrial Average
\n DJIA,
\n +0.08%<\/bg-quote>
\n continued its long win streak, ending up 6.9% on the year, while the Nasdaq Composite Index
\n COMP,
\n +0.61%<\/bg-quote>
\n has shot 35.1% higher since January. <\/p>\n

Read next<\/strong>: Stock-market investors will be focused on this line in Fed policy statement as they look for rate clues<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Call it the Powell gut punch. The stock market lately has been known to stumble on Federal Reserve rate-decision days under Chairman Jerome Powell. It eked out a gain in June after the Fed\u2019s decision to \u201cskip\u201d a rate hike for the first time in over a year. But the S&P 500 index SPX, +0.28% […]<\/p>\n","protected":false},"author":1,"featured_media":40553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-40552","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nIt\u2019s the \u2018late-day selloff\u2019 in stocks that characterizes Fed days under Powell | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Call it the Powell gut punch. 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