Hey, Ross here:
The Fed concludes its meeting today.
The rate decision will be announced at 2 p.m. Eastern time with Powell’s market-moving press conference starting half an hour later.
So to start the day, let’s see how yields have been moving.
Chart of the Day
One look at this chart and you can see how the 10-year Treasury yield has been trending since the start of 2024 – upward.
And yet…
The S&P 500 is currently up 9.2% for the year while the Nasdaq is up 9.5%.
If we go by the “conventional” wisdom, then the market should have been going down not up.
This means that even if Powell’s comments later today only reinforce the “higher for longer” narrative…
It might not even matter much in the longer term.
We should always be prepared for choppy waters – but this bull market still looks strong.
Insight of the Day
Given how markets have been acting this year, there is a higher chance of an upside surprise rather than a downside one.
First, don’t be surprised if markets move lower once Powell starts flapping his lips.
And don’t be surprised if markets end up lower for the week.
But, based on the market’s price action this year, it seems to me that the “higher-for-longer” narrative has already been priced in…
Meaning if Powell’s comments lean a bit dovish – we could very well see a surprise to the upside instead.
In fact, once the post-meeting volatility settles down, the chances of the market accelerating upward may be higher than the opposite scenario…
Which is why we need to be positioned now…
And why tomorrow at 12 p.m. Eastern…
I’m going LIVE for a masterclass that will allow you to pick out the stocks that could take off the most post-Fed meeting.
Don’t miss this rare opportunity…
So please click here to confirm your slot for my masterclass tomorrow…
And my team will send you the login details closer to the start time.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
