Fed Inaction Inflates Nasdaq 100 Futures
NASDAQ 100 futures [NDH0>NDH0] posted one of their biggest gains ever after the Federal Reserve’s open market committee held steady on interest rates and left its tightening “bias” unchanged. Nasdaq 100 futures have dominated the Momentum-5 List for more than a week on strong price rises and finished up 152.50 at 3599.00. March Dow futures [DJH0>DJH0] rose 86.0 to 11,346.0 and March S&P futures climbed [SPH0>SPH0] 19.50 to 1454.50.
T-bonds [USZH0>USH0] plummeted more than one-half point immediately following the Fed’s statement on rate policy. The market reacted to the Fed’s comment that “market uncertainties associated with the century date change” prevent it from raising rates now, although it will likely raise rates at its next meeting in February. March bonds closed on their lows of the day, down 7/32 at 91 1/32.
Energies fell, despite expectations that this week’s American Petroleum Institute (API) report will show domestic stockpiles fell last week. January unleaded gas [HUF0>HUF0] fell .0084 to .7240 and heating oil [HOF0>HOF0] dropped .0030 to .6940.
It was a mixed day in the metals in thin, pre-holiday trade with February gold [GCG0>GCGO] rising 2.99 to 288.9. Silver [SIH0>SIH0] fell 3.5 to 520.0 and copper [HGH0>HGH0] closed at a six-day low, down 1.35 at 83.30.
March wheat [WH0>WH0] fell back from a 10-day high, losing 3 to 246. Other grain contracts slipped mildly as well.
February pork bellies [PBG0>PBG0] rose on a short covering rally following the USDA’s cold storage report that showed higher-than-expected meat consumption in the face of rising inventories. Other major livestock contracts rose slightly as well.
Coffee [KCH0>KCH0] took a break from recent highs following a Brazilian government research report that estimated damage to the crop to be less than expected. The March contract plunged, ending 14.60 lower at 120.70.