From the Wall Street Journal’s “Global Markets Slip and Dollar Extends Rally on Fed’s Rate Outlook” posted early Thursday:
Investors’ risk appetite ebbed after Fed officials Wednesday gave the clearest signals yet of their plans to gradually pull back the easy monetary policies that helped propel markets to record highs. Their median projection showed they see lifting their benchmark rate to 0.6% by the end of 2023, sooner than they anticipated in March.
“The key message is that we will not stay here forever,” said Florent Pochon, head of cross-asset strategies atNatixis. “The Fed really wanted to take the opportunity of the current window and the strong momentum to send the signal that it is ready to normalize, but it will be a difficult exercise if they want to avoid another taper tantrum.”
My take: Mr. Premarket was red yesterday too, and look how that turned out.