Johnny 5 just could not get his mind around the non-accommodative Fed was still accommodative and slowly hiking rates fits with a particularly bright moment in the economy???

Chinese stocks overnight were mixed (ended higher but had an ugly afternoon session)...

 

European stocks ramped into their close (before The Fed spoiled the party)...

 

Stocks had rallied into the Fed statement, kneejerked higher, then drifted lower after Powell mentioned valuations, then accelerated lower on a big MoC Sell...

 

On the week, all major indices are red (Nasdaq hovering around unch)...

 

Equity performance post-Fed was ugly...

Bloomberg explained the post-Powell pummeling as follows:

Equities pared their post-FOMC advance. We wonder if it's due to Powell's repeated reference to inflation being locked at about 2% and inflation expectations being anchored.

From a stock market perspective, that might mean companies will have to keep absorbing higher wage and input costs without much power to pass them on to consumers. That suggests a squeeze on the bottom line. Perhaps more so than what is expected for next year?

If the answer to that question evolves to a "yes", then equity market valuations would be too high as earnings growth will likely not meet the current analysts' projection for a 10% increase. That makes management commentary on the upcoming 3Q earnings conference calls all the more important as 2019 is fast approaching.

Bank stocks took a hit today...

 

The Dollar and Treasury yields ended lower...

 

With all yields aside from the 2Y now lower on the week (5Y unch)...

 

Bond Bears took a beating as the entire curve legged down 4-5bps at the longer-end...

 

The yield curve flattened notably after The Fed...

 

Does anyone else look at this chart of the great Dollar Index and think - penny stock?

 

The CNY Fix was at its weakest since Aug 23rd...

 

Amid the chaos in the dollar, Cryptos were bid...

 

PMs and WTI slipped (crude build), copper was flat...

 

Gold and Silver chopped around after The Fed...

 

We leave it to Warren Meyers (@MeyersWarren) to sum things up:

MOC Imbalance $3.2B to Sell... Well that was fun, and now it's time to bring back "accommodative."