Stock market looking beyond Fed hike to Trump economic plans
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IT'S a study in stock-market psychology: after a year where almost every tick on every stock was caused by anticipation of a Federal Reserve policy move, the actual move this week could be met with something close to indifference.
On Wednesday, the event that shaped the 2016 stock market, the Federal Reserve's first rate hike since 2015, will finally happen. Futures markets are pricing in with absolute certainty that the central bank will increase the rate. The big rate-related moves, a flight from the Treasury bond market into the stock market and the rapid appreciation of financial stocks, have already happened.
Ever forward-looking, the stock market has moved on. Traders are less concerned with this week's news than with something several months in the future - president-elect Donald Trump's plan to roll back regulations and stir up the US economy.
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