U.S. stocks erased earlier losses and jumped higher Wednesday after the Federal Reserve said it sees no interest rate hikes through 2023 and that it will let inflation run hotter than usual to ensure a full economic recovery.

The S&P 500 erased a 0.7% loss and rose 0.3% to a record closing high of 3,974.12. 

While the Fed expects benchmark interest rates to remain near zero for the next two years, the central bank upgraded their economic outlook to reflect expectations for a stronger recovery from the pandemic-triggered recession. Gross domestic product is expected to grow 6.5% in 2021 before cooling off in later years.

Expectations for core inflation also moved higher, with the committee now looking for a 2.2% gain this year as measured by personal consumption expenditures. The central bank’s stated goal is to keep inflation at 2% over the long run.

To subscribe to real time signal, email to us at futures.coin@gmail.com for details. Sign up today for March subscription.


Plan A : Long if market supported firm above 3942. Targets are 3958, 3975 and 3991.

Plan B : Short if market failed to support above 3942. Targets are 3917, 3890 and 3863.
 

Futures contracts tied to the major U.S. stock indexes were mixed early Thursday after the Federal Reserve said it does not currently expect to hike interest rates through 2023.

The Nasdaq Composite wiped out earlier losses and ended the day 0.4% higher at 13,525.20. The tech-heavy benchmark fell 1.5% at one point as growth stocks came under pressure amid surging bond yields again.

Fed Chair Jerome Powell reiterated that the central bank wants to see inflation consistently above its 2% target and material improvement in the U.S. labor market before considering changes to rates or its monthly bond purchases.

Tesla, for example, had fallen 3.8% on Wednesday prior to the Fed’s announcement, tracking the rise of long-term rates. The stock popped following the Fed’s release and ended the session up 3.6% as yields receded.

Plan A : Long only if market supported firm above 13046. Targets are 13078, 13109 and 13140.

Plan B : Short if market failed to support above 13046. Targets are 13008, 12963 and 12924.

To subscribe to real time signal, email to us at futures.coin@gmail.com for details. Sign up today for March subscription.

Plan A : Attempt sell if oil price trades below 65.6. Targets are 64.1 and 62.3.

Plan B : Consider long only if oil price able to trade firmly above 64.1 and rebound. Targets are 64.9 and 65.6.