Fed Day Chaos: S&P 500 Records $2.9 Trillion in Swings
The S&P 500 experienced three major swings totaling roughly $2.9 trillion in market cap during a volatile session, as markets react to the end of clear Fed guidance.
During Wednesday's session, the S&P 500 swung wildly as markets digested the Federal Reserve's latest decision. Three distinct legs saw the index fall 85 points (-$770 billion), then rally 110 points (+$1 trillion), and finally drop 120 points (-$1.1 trillion), cumulatively moving nearly $2.9 trillion in market capitalization.
The extreme volatility highlights the market's unease with the shifting monetary policy backdrop, where forward guidance is increasingly absent. The era of predictable Fed signals appears to be over, and investors are responding with sharp repricing.
Source: The Kobeissi Letter