Shares of energy companies fell sharply as traders hedged their bets on the outlook for interest rates.
Global market complacency over Federal Reserve policy was rocked recently when former Treasury Secretary Larry Summers said there was a "meaningful chance" the Fed's next move would be a rate hike. "Anything that's going to show the health of economy is going to be scrutinized ... it always is but maybe more so now," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. The Fed is "not in a rush ... they're still data dependent.
"The Street had gotten way ahead of itself, or at least ahead of the dot plot, now it's like all of a sudden they're coming in line where the Fed already was. To me, it would be surprising to see an actual hike right now. I think that would be a jolt to the system, especially because of the fact that [Chairman Jerome] Powell has tried to choreograph so well so there aren't any big surprises or shocks."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-20-24 1802ET
