S&P 500 Sees $2.9 Trillion in Market Cap Swings as Fed Guidance Era Fades

The S&P 500 swung wildly on Fed day, with three massive reversals worth an estimated $2.9 trillion in total market capitalization. The turbulence underscores growing frustration as the era of clear Fed forward guidance comes to an end.

Between 9:30 AM ET and 12:15 PM ET, the index fell 85 points, erasing around $770 billion. It then rallied 110 points through 2:55 PM ET, adding $1 trillion, before plunging 120 points in the final hour, wiping out $1.1 trillion.

Market commentators described the session as a "complete free-for-all," highlighting the challenge for investors navigating policy uncertainty without the steady hand of central bank signaling.