SPY is trading 1% up today as investors absorb the Fed’s widely anticipated 25-basis-point rate increase to 3.75%-4.00%, easing immediate policy uncertainty.
- The unanimous decision, confirmed by the official statement, signaled confidence in the economic outlook.
- Falling crude prices and Treasury yields are reinforcing the rally by easing inflation concerns; Brent crude was near $102-$104 per barrel and the 10-year yield fell below 5%.
- Technology stocks are providing additional upside leadership.