S&P 500 Tests New Highs As FOMC Minutes Show Fed May Slow The Pace Of Rate Hikes

The S&P 500 rose when the FOMC minutes were made public.

The S&P 500 hit daily highs near the 4030 level as traders reacted to the release of the FOMC Minutes.

Markets benefited since the FOMC Minutes were a little bit dovish. According to FOMC Minutes, the majority of poll participants believed that the most likely outcome at the ensuing December meeting would be a rise in the target range for the federal funds rate of 50 basis points.

It's important to note that some participants noted an increase in the risk that the total amount of policy constraint would be greater than what would be necessary to get inflation back to 2 percent.

The FedWatch Tool estimates that there is an 80.6% chance of a 50 bps increase at the subsequent Fed meeting in December. At the start of today's trading session, there was a 71.1% chance of a 50 bps hike. Equities will benefit from the chance of a "modest" rate increase, which is rising.

The bulk of market segments have been rising as of late. Energy equities were put under pressure as WTI crude closed below the $78 mark, however reports indicated that the Russian oil price restriction may be set in the $65–$70 range. Schlumberger, Halliburton, and Baker Hughes all suffered losses of 3–4% during today's trading session.