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Dovish Interest Rate Hike

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

  • In the Morning Capsule, we shared with you that Wall Street was positioned for two potential outcomes from the FOMC meeting.  Regarding one of the two potential options, we wrote:

A dovish hike of 25 basis points is being given an 80% probability by Wall Street.  On the surface, the combination of dovish and raising interest rates seems to be an oxymoron.