Sometimes it’s just better to sit on the sidelines and wait. If anything, Monday was a slow day in the markets. We once again achieved new highs for the S&P 500, but volumes overall were low. The index closed up +0.17% to settle at 2747.71, Meanwhile, the Dow Jones settled at 25283, down -0.05% for the session. Overall, few major stocks made impressive moves, with Weight Watchers and GoPro both being notable exceptions.
As far as the FOMC is concerned, member Bostic voiced concerns that the fed should be patient with rate hikes. This signals a potential shift in FOMC rate policies as Janet Yellen will be leaving her post next month, leaving the possibility that rate hikes may slow down going forward. Of course, all of this is very speculative at this point, but Bostic’s comments do seem to align with President Trump’s favoring of lower interest rates, and incoming FOMC chair Powell might lean in favor of softening the pace of rate hikes. We’ll keep an eye on the FOMC during this crucial period going forward.