While the Fed left rates unchanged (as expected) a hawkish dot plot has traders bracing themselves for a rate hike this year. The Federal Reserve voted to keep rates unchanged at a range of 3.5% to 3.75%, as was universally expected. However, stocks dropped as the release removed any hints of an easing bias and the Fed’s dot plot came out on the hawkish side.
The S&P 500, Nasdaq 100, Russell 2000, and every Magnificent 7 stock traded lower. Every S&P 500 sector fell, with communications leading losses.
Stocks that moved higher:
Allbirdssurged as its AI pivot continued to pay off, with the companyannouncing a corporate name change and new CEO hire.Figmaclimbed afterCiti initiated coverage with a Buy rating and a $36 price target.
Stocks that moved lower:
CarMaxfell despite beating on earnings and revenue, but reportedreported margin pressure and falling per-unit gross profit.Carvanaalso fell on the news.Snapfell after unveiling“Specs," a $2,195 pair of augmented reality glasses, raising questions about consumer demand at that price point.