December 17, 2018

Market News

Stocks are moving lower to begin the week as the Federal Reserve meeting, and a potential government shutdown loom in the distance.  More than half of the stocks in the S&P500 are now trading in a bear market (20% decline), as fears mount over global growth, trade, and political uncertainty.  Major U.S. indices are churning in correction territory (10% decline) from recent 52-week highs as well, as investors search frantically for safety.  All in all, the S&P500 is down 3.53% YTD, and is currently trading at 2,577.88, 0.87% lower.

Treasuries are moving higher to begin Monday’s trading session as all eyes shift towards the U.S. Central Bank.  The Federal Reserve is set to meet Tuesday and Wednesday this week, with a policy announcement set to be released at 2PM EST on 12/19.  Bloomberg currently has the odds of a rate hike pegged at 74.1%.  Although it looks like a 25bp increase in the fed funds rate is imminent, many are expecting the announcement to convey a dovish tone going forward, as global economic data has been reported weaker-than-expected as of late.  The US 10-Yr Note is currently trading at 2.8678%, 0.0217 lower.

 

Josh Pappert – VP, Capital Markets
Nations Direct Mortgage