WASHINGTON, March 16, 2017 – What a difference a day makes. Wednesday’s Wall Street action was off to the races after the U.S. Federal Reserve announced what had already been declared a virtual certainty: they were raising interest rates 0.25 percent.
Having feared that rate increase since the beginning of March, traders, investors and hedge funds alike breathed a collective sigh of relief that the announcement could have been a lot worse, so they acted like it was Fat Tuesday redux, pinning the Dow Jones Industrials north of the +200 point mark for much of the rest of Wednesday.
Apparently, they took a closer and more sober look at the Fed’s remarks after relaxing for afternoon tea that evening. They promptly returned to the actual and virtual trading floors Thursday morning and proceeded to resume their routine March beating of the averages, even failing to be impressed by a reduction in oil inventories.
In an odd twist, gold and silver, which have been getting absolutely creamed over the last two to three weeks, mounted a healthy rally this morning, although the shares of gold and silver mining companies took it in the ear yet again.
What apparently spooked those investors who went over the Fed’s latest missive with a fine-toothed comb was what they viewed as a veiled threat that the Fed might raise rates even more than the two or three times they’d seemed to have initially promised. That, apparently, was just enough to nip yesterday’s Trump Rally revival and plunge trading floors back into the depths of despair. “What a Difference a Day Makes,” goes the song, and that was certainly true today.
Pretty much ever sector got hammered. There were the gold and silver miners, of course. But the oil sector wasn’t happy, nor were the healthcare and pharmaceutical stocks as once again, uncertainty and fear are stalking these companies, given the utter chaos surrounding the “repeal and replace” strategy Republicans have promised to resolve the drowning Obamacare debacle. Good luck guys.
Let’s get that repeal and replace thing done quickly and efficiently so that we can move into repairing the tax code next. The electorate really meant it when they voted for Trump and the Republicans in 2016. If the GOP doesn’t shape up—and soon—the resulting market disappointment crash will pale in comparison to what will happen next: America’s final transformation. Do you folks really want that on your conscience?
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