On Wednesday the Fed concluded its’ March meeting. It seemed as if Federal Reserve Chairman Jay Powell really hit a homerun, particularly since financial media had been commenting on the distinct possibility that another bond rebellion would result from his comments. The release of the SEP, or ‘dot plot’ also showed governors mostly dutifully in line with his devotedly and familiar dovish message. He appeared to have successfully threaded the needle and markets settled nicely up on Wednesday in the wake of his comments. On Friday, Jay Powell released an op-ed in the WSJ that markets seemed to like.

Thursday, however, was a different beast altogether. Financial markets were roiled by rates again. The 10YR spiked up quickly again, peaking at 1.753% on Thursday, before flirting with the mark again on Friday morning and settling around 1.73% by close. The Nasdaq dropped over 3% Thursday and the markets continued dropping into the close. Notably, small caps fell significantly as well. Oil prices declined over 7%.

The market seems to be having difficulty interpreting the Fed and vice versa given the utterly unprecedented nature of our current situation. If you throw in a quadruple options expiration it shouldn’t be surprising to see some skittishness in the wake of the p...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free