Federal Reserve Puts a Spanner in the Works

Everything was set for a push to new highs – the index had a new high close on the monthly charts and the individual stocks were doing quite well. The sentiment was upbeat as the market participants went into the November Federal Reserve meeting hoping for a ‘pivot’, a signal that was expected after the 75 bps point hike. It was also expected that the Federal Reserve would switch to a few smaller rates moves, pause and then sometime next year start cutting rates again. The markets were convinced this would validate the drop in bond yields that took place last week and turn into the beginning of a steady decline.