Market reacts to Fed meeting–and then over-reacts as it hears Fed say rates will stay really low for really longer

Market reacts to Fed meeting–and then over-reacts as it hears Fed say rates will stay really low for really longer

Today Friday March 17, the financial markets have moved to the other end of the dial from its pre-meeting worries. Markets have decided that the Fed’s comments indicate that Janet Yellen & Co. are very dovish on inflation and interest rates.At the close of trading on Thursday the 10-year Treasury had dropped to 2.53%, that’s below the peak this week of 2.63%. Today the yield dropped further to 2.50%

Winners from the Fed’s move on Wednesday

Winners from the Fed’s move on Wednesday

The jump in the price of gold and the even huger spike in the prices of gold mining stocks tells us something really important about how the financial markets see the Federal Reserve’s action and rhetoric on Wednesday, March 15. Gold for April delivery climbed 2% in New York after the Fed raised its short-term benchmark interest rate by 25 basis points. The VanEck Vector Gold Miners ETF (GDX) roared ahead 7.69%

Oil up today after plunge yesterday: What’s this volatility telling us?

Oil up today after plunge yesterday: What’s this volatility telling us?

Oil prices have bounced back today from yesterday’s tumble with West Texas Intermediate climbing 1.63% and the Brent international benchmark advancing 1.49% as of 11:45 a.m. New York time. The gain still leaves West Texas Intermediate below $50 a barrel at $48.50. The ostensible reason for today’s climb is a surprise drop in U.S. crude inventories of 237,000 barrels last week,