Dow and S&P 500 suffer post-FOMC drop, Nikkei 225 rebounds
Global indices were rocked by the Fed decision last night, dropping sharply, though the losses have paused for now.
Dow edges higher after losing streak
Last night’s Federal Open Market Committee (FOMC) decision tipped the Dow Jones into its biggest one-day falls in over two years.
However, it avoided a close below 42,000, and so far in early trading we have not yet seen a continuation of the losses. The index has suffered its worst losing streak since 1974, dropping for ten days in a row.
Further losses target the pre-election low at 41,700.
S&P 500 hits one-month low
The S&P 500 was similarly hard-hit, though for now it is holding around the mid-November low.
If it avoids further losses then a move back towards the recent highs is still possible, especially given the weak breadth readings, with just 8% of the S&P 500 trading above their 20-day moving average.
Additional declines head towards the pre-election lows at 5700.
Nikkei 225 surges off overnight low
The Nikkei 225 index has come storming back from the post-FOMC weakness, surging back above 39,000.
Such a large recovery leaves the index poised to test 40,000 once again, the key barrier for the moment to any additional upside. Meanwhile, there remains clear buying pressure down towards 38,000, which was support in late November.
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