Weekend Market Review | What Did the Fed Do to the Market

Let’s take a look at the market after the latest Fed meeting in this Weekend Market Review with Brett Witkowski. When examining the S&P 500, we’re seeing a downturn, which appears to be another test of the 50-day moving average. This type of movement is completely normal and has occurred multiple times already this year.
We’ve also seen a surge in selling interest from individual investors. What might be driving this? One key factor is the impact of news-driven consumption. It’s important to recognize how much your selling behavior can be influenced by the news cycle.
Speaking of market volatility, Wednesday marked the second-largest single-day gain for the VIX (Volatility Index) - a key gauge of market fear. This spike was largely driven by the Federal Reserve's latest dot plot, particularly the projection for just two interest rate cuts in 2025. Looking at the Fed's forecast, a clear pattern emerges: whenever inflation is under control, they tend to lower their expectations for future rate cuts - just like what we saw in June 2024.
So, what’s the takeaway? We’re still in a "melt-up" phase. It’s essential to keep things in perspective, especially with the holidays upon us. Being overly fixated on short-term market moves can hurt your long-term strategy. Remember, these fluctuations are all part of normal market behavior.
We’re looking forward to seeing how the final days of 2024 unfold, and we hope everyone enjoys a wonderful holiday season with friends and family!
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