The Fed wrapped up its two-day meeting today. The outcome resulted in another $10B decrease of its bond buying program, to $35B. Today, US Equity markets were flat in anticipation of this announcement. In addition, it is estimated that interest rates will continue to be low, unless inflationary pressures cause the Fed to act.
“The Fed has continued to decrease its bond buying program by $10B. Note that interest rates will most likely remain low despite the recent increase in the CPI, with year-over-year figures pointing north of 2%,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 0.04% since Friday’s close. Year-to-date performance for the index is up 9% after being up above 20% at the end of February.
- PHLX GOLD/SILVER SECTOR (XAU) was up 1.41% as of noon on Wednesday. The price of gold is currently $1,272 per ounce, down $2 this week.
- PHLX OIL SERVICE SECTOR (OSX) was up 0.03% as of noon on Wednesday. The price of oil is currently $106 per barrel, down $1 this week.
INDEX TO WATCH
- Track the global equity space by monitoring the NASDAQ Global Index (NQGI). The quarterly evaluation for the month of June becomes effective after the close of trading on the 3rd Friday each June (this year, June 20, 2014). The index is up 0.15% this week and up 4.27% year-to-date.