Six Takeaways From Markets Reaction to the Fed

The markets’ immediate response to the Fed’s hike on Wednesday included an impressive run-up in stocks and significantly lower yields on U.S. government bonds. Some market observers hailed the benefits of a “dovish hike” by a “Goldilocks Fed.” Others cautioned against overextrapolating from what was mainly a technically-driven move. In assessing these and other views, here are six things you should know about the drivers of this unusual market reaction and some implications for what may lie ahead.

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.