Good afternoon. The day of reckoning is finally upon us. (Okay, it's not that dramatic.)
With the Nasdaq Composite, S&P 500, and Dow notching record closes on Tuesday, U.S. equities will now face a series of tests which could bolster or derail the market's historic rally. More than 300 firms are reporting earnings today. And this afternoon, the Fed will announce what it will do with interest rates, also offering clues about where it might go from here.
The expectations are that the earnings, particularly from megacap names like Microsoft, Alphabet, and Meta, will be strong; much as they have been all season. On the Fed front, expectations are for a quarter-point cut, plus some color on what might await at the Fed's final FOMC meeting of the year in December.
Wednesday Reading:.
However, through midday, stocks are going in all sorts of directions. The Russell 2000 (+0.62%) is rallying from a red start to the day, the Nasdaq (+0.52%) and Dow (+0.52%) are moderating in anticipation, and the S&P 500 (+0.20%) has pulled back from some of the earlier day gains.
At the same time, we also have murmurs about a China trade deal, worries about SNAP and WIC, and a persistent government shutdown without an end in sight. Whether any of those factors can singularly interrupt the gravy train remains to be seen.
-- Noah Weidner, Markets Reporter
