There was continued turbulence in the indexes of the US stock market after the Federal Reserve upped its interest rates for the sixth time since 2015 end. The Fed signaled that it may increase rates at least twice in the coming days before 2018 ends. The session ended little lower. The central bank also indicated that it will continue to increase the interest rates in 2019.
Rates and predictions
The central bank jacked up the interest rate by a quarter percentage point. This interest in rates was the only issue which got the much-needed votes. The US Treasury note yields for 10 years at first extended its rise. It touched 2.93 percent prior to the increase being cut for trade near to 2.883 percent. This figure is near to the policy announcement. The Treasury prices and yields generally move in mutually opposite directions. The US Dollar Index weakened after the decision was taken by the Federal Reserve.
Analysts have made no predictions. Joe Saluzzi, who co-heads equity trading at the Themis Trading company, has opined that nobody knows what will happen after the Federal Reserve ups its two interest rate hikes in 2018. He said that super low volumes could be responsible for such choppy prices. This could be also due to the inclement weather at America's East Coast. He said that the markets are quiet. Liquidity and also volumes are thin. Any order sufficiently big in size could influence the markets. He pointed out that a substantial portion of the Russell 2000 stocks is made of financials. The latter respond excellently to any environment that has a steep yield curve.