US equities closed lower yesterday but futures point to a strong rebound
The Fed stuck to the script yesterday with Powell reaffirming two key points:
- The Fed is not close to consider tapering bond purchases just yet
- Transitory inflation above 2% would not cut it in terms of convincing them to start more aggressive tightening in policy
That said, given such frothy levels, things may not be as straightforward for equities in the weeks/months ahead. The S&P 500 touched 4,200 yesterday, which is seen as a year-end target for a number of firms.
I would not discount bouts of volatility that could follow but in the event of any major dip, I don’t see any other play besides buying that up – at least for now.