Categories: U.S. Investing

Fed Announcement Snaps Stock Success Streak

Fed Announcement Snaps Stock Success Streak (Bloomberg)

Investors took the Federal Reserve’s announcement of its intent to maintain its current easy-money policy as a sign of a weak economy and exited the markets, sending the S&P 500 down for the day and ending its four-session winning streak. “People are looking at it and saying, ‘OK it’s about what we expected, so there’s no real upside, and we’ve traded it up, so now let’s back off a little bit,’” Brad McMillan, chief investment officer for Waltham, Massachusetts-based Commonwealth Financial Network, said. “Everyone was buying in the anticipation of continued stimulus. That is more or less exactly what they’ve got.”

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