“Take a Hike Sir” – Vista Partners Daily Market Recap 12/19/2018
Despite opening the session with gains, US stocks slumped off abruptly after the Fed clipped its recently sprouted dovish wings and announced their decision to hike the interest rate for the fourth time this year. The S&P 500 dropped 1.54% (39.20 points) today while the Nasdaq plummeted even farther, losing 2.17% (147.08 points). The Dow ended the day with losses of 1.49% (351.98 points).
Of the individual components of the Dow, only Verizon (VZ) was able to hold onto gains today, as it rose 0.38%. Most performed significantly worse, though. Intel (INTC) sunk an impressive 4.55% during today’s session while Apple (AAPL) plunged 3.12%.
Atossa Genetics (ATOS) was able to buck the overall market trend and rise 1.74% to end the day.
Today’s hike comes after weeks of exceptionally poor performance by the stock market that had some hoping the Fed would back down from it’s expected plan of action. But the Fed pointed to economic activity that is “rising at a strong rate” and a strengthening labor market as signs that the economy is doing fine. The Fed sent a strong message today that it’s important to remember that the market and the economy are two different things.
The Fed did hint that it may soften its future plans for three rate hikes next year, cutting that number to two. Acknowledging the recent market volatility, the Fed stated that it “will continue to monitor global economic and financial developments and assess their implications for the economic outlook.”
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
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