Investors’ unrealistic expectations that the Federal Reserve Bank is going to declare victory over inflation anytime soon are clearly wrong.
While the Federal Reserve Bank held rates steady, Chairman Jerome Powell gave no indication that a continued pause will persist. In addition, the chances of rates coming down in 2024 is going lower and lower.
Heading into the final hour, there was a chance the index was going to shake off the hawkish comments from Powell, but sellers overwhelmed buyers into the close. In the final hour, the index shed 40+ handles, making new lows into the closing print.
For the session, the index shed 43 handles at the closing print of 4447. That marks the lowest closing price for the index since August 24. Based on the daily charts, the next identifiable area of support is down at its August 25 low of 4412.25.
Among the top components, UnitedHealth Group (NYSE: UNH) was the only, and therefore the biggest winner. The issue fully participated in a rally in the private insurance sector. For the session, the issue gained $11.47 or 2.39% at the closing price of $492.13.
That was just over three percent better than the cash index’s decline of 0.94%.
On the downside, Alphabet Inc. Class C (NASDAQ: GOOG) was the biggest loser. The issue bore the brunt of the retreat in the mega cap technology sector. For the session, the issue declined by $4.24 or 3.1% at the closing price of $134.59.
