March 16, 2017
U.S. stocks finished higher yesterday after the Federal Reserve hiked the target for its Fed funds rate by 25 basis points to a range of 0.75%-1.00, as widely expected. The FOMC also kept its rate outlook intact, indicating that most Committee members projected two additional rate increases for 2017. Oil prices moved up, the U.S. dollar declined, and gold jumped higher. The Dow Jones Industrial Average increased 0.5% to 20,950, the S&P 500 Index jumped 0.8% to 2,385, and the Nasdaq Composite advanced 0.7% to 5,900. Treasuries moved higher following the Fed’s decision, as the yield on the 2-year note fell 9 basis points to 1.30%, the yield on the 10-year note was down 10 points to 2.50% and the 30-year bond rate declined 7 points to 3.11%.
Global markets were up overnight and domestic equity futures suggested a positive start on Wall Street. The economic calendar will continue to be busy today, with housing starts and building permits, weekly initial jobless claims, the Philly Fed Manufacturing Index, and the Job Openings and Labor Turnover Survey (JOLTS), a measure of unmet demand for labor. Adobe Systems and Dollar General announce earnings results today.
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