• The stock market is under selling pressure as Federal Reserve Chairman Jay Powell says there isplenty of room toraise rates.
• Trading remains very choppy. The VIX, while still lower, is back above 30.
• The Dow(DJI)turned negative briefly and is flat. Boeing is weighing on the index.
• The Nasdaq(COMP.IND)+1%and S&P 500(SP500)+0.5%are seeing sharp swings.
• Seven of the 11 S&P sectors are now lower.
• The 10-year Treasury yield is up 7 basis points to 1.86%. Rates bounced when Powell said he wouldn't rule out back-to-back rate hikes.
• This time around, the Fed kept rates steady, didn't pull tapering forward and isn't going to look at reducing the balance sheet until after it starts raising rates.
• "In short, nothing to scare markets today, and we expect some of the more aggressive forecasts for rate hike and balance sheet run-off to be scaled back before the March meeting," Pantheon Macro says. "As before, though, stocks, especially tech, will remain vulnerable to comments from some of the more hawkish FOMC members."
• Investors initially piled further into risk with no signs of renewed urgency from the Fed, but may be thinking now that it isn't taking the inflation threat seriously enough.
• While the taper goes on, the Fed is still doing QE, expanding its balance sheet and pumping cash into the system.
• "It's appropriate at this time to start to reduce the balance sheet and let interest rates find their own equilibrium," Scott Minerd of Guggenheim said on Bloomberg.
• The Info Tech sector is still leading, thanks in good part to a jump in Microsoft. Its earnings and guidance are living up to the legend,Citi says.
• Utilities and Consumer Staples are still the two sectors in the red.
• Among active stocks, Corning is the best performer in the S&P thanks to strong numbers and outlook.
• F5 is the biggest decliner on supply chain worries.