Stock Market Today: Stocks Swing Wildly After Latest Fed Rate Hike
Stocks erased an early morning lead after the central bank indicated it will not begin to cut rates until 2024.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Stocks traded modestly higher ahead of this afternoon's policy decision from the Federal Reserve. Prior to the announcement, individual stock news held investors' attention, with Delta Air Lines (DAL) rising 2.8% after the air carrier said it expects adjusted earnings per share to double and revenue to soar 20% in fiscal 2023. Additionally, SoFi Technologies (SOFI) jumped 6.1% after a regulatory filing showed CEO Anthony Noto bought $5 million shares in the fintech firm. However, gains for the major market indexes quickly disappeared after the Fed decision.
Specifically, the Federal Reserve, as expected, lifted its benchmark interest rate by 50 basis points – marking a slowdown to the 75 basis point rate hikes it issued at the last four meetings. However, the central bank's "dot plot" – which summarizes the outlook of each individual official for the federal funds rate – indicated the potential to hike rates by an additional 75 basis points in 2023 and not begin to cut rates until 2024.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"The Fed did not welcome the disinflation trends that have just started to emerge and focused on robust job gains and elevated inflation," says Edward Moya, senior market strategist at currency data provider OANDA. "Any hopes of a soft landing disappeared as the Fed seems like they are committed to taking rates much higher."
At the press conference following the Fed decision, Chair Jerome Powell affirmed that "ongoing increases will be appropriate" to reach price stability. The central bank chief added that based on dot plot projections, central bankers "overwhelmingly … believe inflation risks are to the upside."
The major market indexes, which were up roughly 0.7% ahead of the decision, were all down by more than 1% as Fed Chair Powell took the stage. Stocks erased some of these losses into the close, but the Dow Jones Industrial Average still finished down 0.4% at 33,966, the S&P 500 Index shed 0.6% to 3,995, and the Nasdaq Composite gave back 0.8% to 11,170.
Can These 3 Stocks Beat the Market?
Today's wild swings in reaction to the Fed decision just shows how difficult it has been to be an investor throughout 2022. And with an uncertain economic backdrop still looming, it's likely the challenging market environment will continue into the new year.
Still, the volatility creates exciting opportunities for stock pickers. And while deep pocketed players like Warren Buffett have access to research and insights that help them anticipate which stocks to buy and sell during big market swings, most retail investors do not.
Enter Danelfin. The analytics platform harnesses the power of big data technology and machine learning to analyze hundreds of fundamental, technical and sentiment data points per day for 1,000 U.S.-listed shares and 600 European-listed firms, then generates several stock picks that it views as highly likely to outperform the market over the next 30 to 90 sessions.
So, what does Danelfin say investors should be buying now? These three dividend stocks are at the top of the platform's list of high scorers.
-
Nasdaq Slides 1.4% on Big Tech Questions: Stock Market TodayPalantir Technologies proves at least one publicly traded company can spend a lot of money on AI and make a lot of money on AI.
-
Should You Do Your Own Taxes This Year or Hire a Pro?Taxes Doing your own taxes isn’t easy, and hiring a tax pro isn’t cheap. Here’s a guide to help you figure out whether to tackle the job on your own or hire a professional.
-
Trump $10B IRS Lawsuit Hits an Already Chaotic 2026 Tax SeasonTax Law A new Trump lawsuit and warnings from a tax-industry watchdog point to an IRS under strain, just as millions of taxpayers begin filing their 2025 returns.
-
The New Fed Chair Was Announced: What You Need to KnowPresident Donald Trump announced Kevin Warsh as his selection for the next chair of the Federal Reserve, who will replace Jerome Powell.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have TodayAdvanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
January Fed Meeting: Updates and CommentaryThe January Fed meeting marked the first central bank gathering of 2026, with Fed Chair Powell & Co. voting to keep interest rates unchanged.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
How the Stock Market Performed in the First Year of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
The December CPI Report Is Out. Here's What It Means for the Fed's Next MoveThe December CPI report came in lighter than expected, but housing costs remain an overhang.
-
How Worried Should Investors Be About a Jerome Powell Investigation?The Justice Department served subpoenas on the Fed about a project to remodel the central bank's historic buildings.
-
Dow Hits a Record High After December Jobs Report: Stock Market TodayThe S&P 500 also closed the week at its highest level on record, thanks to strong gains for Intel and Vistra.
