Interest rates are largely a solution. Instead, investors turn their attention to the Fed’s economic forecasts over the year.
The so-called DOT chart is released quarterly, summarizing Fed officials’ forecasts on interest rates, inflation and growth, etc. The Fed’s median projected two quarter-point rates in 2025.
Investors are convinced that the Fed will keep interest rates stable, which means that this has little impact on stock prices. However, dot charts are indeed in the mobile market.
These three main indices fell sharply at 2 p.m. When the Fed rose in the morning of the meeting, the Fed issued a prospect. Of all three indexes, the rest of the afternoon was fluctuating. Stock pictures are all peaks and valleys.
Eventually, they settled roughly for the beginning of the day.
The S&P 500 index closed 0.03%, Dow Jones Jones fell 0.1%. this Nasdaq It is the only one of the three that are in the positive area that day, with a finale of 0.13%. The S&P 500 and Nasdaq stocks remain positive for the year to date, up 1.9% and 1.4% respectively.
The latest dot plot brings the prelude to stagnation, the most disastrous economic scenario. Investors hope the worst market turmoil this year is behind them. After President Donald Trump’s tariff policy, stocks, bonds and dollar fell into stocks, bonds and dollar, and the market mostly recovered.
However, the latest Fed forecast has raised concerns. Inflation and unemployment are forecast to grow, while growth forecasts are down. Even if you make scattered suggestions, anything will put the market at a high alert. The DOT chart sees expectations for core inflation increase to a peak of 3.1%, while core expectations for March were 2.8%, with the expected unemployment rate from 4.4% accounting for 4.5%.
But any forecasts and plans are likely to change, Fed Chairman Jerome Powell said in a press conference Wednesday.
“These individual predictions are always affected by uncertainty, and as I pointed out, the uncertainty is unusually high,” Powell said. “Of course, these predictions are not plans or decisions of the committee.”
When markets struggle to deal with domestic uncertainty; they faced another war in the Middle East. The growing conflict between Israel and Iran has now added a major new wrinkle, and investors will consider this in their decision-making. Whenever there is a question in the Middle East, the oil market usually becomes the central stage. Both countries bombed each other’s refineries in the early stages of the war.
On Wednesday, oil futures fell 3% in 25 minutes in the morning before recovering for the rest of the day. They then recovered about 2.3% of the recovery, returned to active territory, and then dropped in the late afternoon. At the time of release, they fell 0.1%.
As oil prices rise, so does green. At least in most cases. The US dollar index (DXY) rose 0.16% on the day. The trajectory lasted for two days of positive action on index, which dropped to under 98 on Monday.
