Market Reacts Negatively to FOMC Comments

by PFS Group
Financial Sense

The market took comments regarding QE in a negative light and sold off sharply after hitting cycle highs yesterday. The S&P 500 traded off by 1.25% and the Dow was lower by 0.77%. Six of the ten S&P sectors sold off by more than 1% today. Energy and materials were the weakest sectors on the day.

There were several comments made regarding the continued purchases of securities by the Federal Reserve. Some of the discussion between Fed members considered stopping the buying sooner than expected but holding the securities for a longer period. The Fed really has not changed their stance for quite some time. They will aggressively buy securities as long as employment is a concern and until growth picks up.

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