St. Louis Fed chief James Bullard was a guest on Fox Business News during the 9 AM hour. His optimistic view of the economy included speculation that the Fed could hike interest rates by the end of Q1 of next year. The S&P 500 respond by plunged at the open, hitting its -0.76% intraday low twenty minutes later. But the freak-out over the comments of a non-voting Fed president faded during the day, and the index closed with a fractional loss of 0.12%. It is up 5.89% for the year and only 0.29% off its record close four sessions ago.
The yield on the 10-year note ended the day at 2.53%, down 4 bps from yesterday's close. It is now 9 bps above its interim closing low of May 28th.
Here is a chart of the past five sessions.
Here is a daily snapshot of the S&P 500. How seriously did the market take today's Fed tempest in a teapot? Zzzzz. Volume was well below its 50-dya moving average.
For a longer-term perspective, here is a pair of charts based on daily closes starting with the all-time high prior to the Great Recession.
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