S&P 500: The S&P 500 May Begin to Price in a 50-Basis Point Hike at the March 21-22 FOMC Meeting

 


The S&P 500 pulled back to retest the trendline support at 3,943.08 / its 600-day EMA on Friday, on concerns over inflation. The January core PCE, closely watched by the Fed, came in higher than expectations. Both the January CPI and PPI, released last week, were disappointing. The index was down for the third week in a row. Hence, it could bounce off from here or else pull back further to test the trendline supports at around 3,925.

From the Fed minutes, released on Wednesday, some FOMC members were pushing for a 50-basis point hike at the last FOMC meeting in January. According to the CME FedWatch Tool, the possibility of a 50-basis point hike at the March FOMC meeting is 27%, an 8.9% jump from a week ago.

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!

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