Major averages fell yesterday on higher, above average volume with the S&P 500 staging an outside reversal day.
The Federal Reserve concluded its two day meeting and said "economic growth slowed" since its last meeting in December and that inflation is unlikely to rise rapidly toward its 2% target. The Fed also acknowledged stock market turmoil in the U.S. and China, saying it "is closely monitoring global economic and financial developments." Yet despite a more subdued near-term outlook, the Fed said it expects the economy to continue to grow "at a moderate pace," helped by a strengthening labor market. This overall suggests that another rate hike is still on the table, though less likely for March. Markets sold off hoping for a more dovish stance in addition to concerns about the slowing global economy.
Futures are up around over a percent as oil trades higher and Facebook reported blowout earnings, sending the stock sharply higher.
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