© Reuters. Stocks on the move after “dovish” FOMC minutes
- Many in the market had been bracing for a signal that a fourth rate hike was on the table for 2018, but those bets are being pulled after the January FOMC minutes showed minimal worry about speedier wage pressures.
- Some on the committee also believe the net effect of tax cuts could be temporarily slower inflation as corporations look to gain market share by cutting prices.
- The Dow (NYSEARCA:DIA), S&P 500 (NYSEARCA:SPY), and Nasdaq (NASDAQ:QQQ) have all jumped to 1%-plus gains.
- The 10-year Treasury yield remains at about 2.90%, but the two-year yield – up three basis points ahead of the minutes – has returned to about flat on the session.
- The dollar (UUP, UDN) has turned only modestly lower, and gold (NYSEARCA:GLD) has added a couple of dollars, now up 0.4% today.
- Previously: FOMC minutes: Gradual hike policy still in place (Feb. 21)
- ETFs: IEF, PST, IEI, VGIT, UST, DTYS, TYO, GSY, SCHR, TBX, TYD, ITE, DTYL, TFLO, USFR, HYDD, DFVL, TYNS, DFVS
- Now read: S&P 500 Retraces 50% Of Correction Loss, A Healthy Bounce?