It was a fun rid but S&P 500 futures are now back where they were before the FOMC decision. It was a 50-point rise and fall, or about 0.7% in each direction.
If you want to blame anyone, blame Oracle for the decline as Nasdaq futures are underperforming down 1.1% on an 11% share price decline after earnings. The market is getting worried about the AI spending and Oracle just keeps spending more.
If you want a more nuanced answer, this is the usual post-Fed chop. The cut and wait-and-see statement is exactly what was expected so the rally probably wasn’t justified.
And a final warning: We’re now into the year-end flows part of the year where nothing makes sense and it’s all about taxes, position squaring, deleveraging and settling the books, not pure investing or trading.
This article was written by Adam Button at investinglive.com.
