
Perspective: Morning Commentary for September 17
September 17 – The Fed delivered a 25-basis point rate hike as expected yesterday, bringing their benchmark range to 3.75% - 4.00%. This is officially the first rate hike by the Fed in more than three years, dating back to July 2023. The market was pricing in near certain expectations of such a hike in the lead-up, leading to a relatively muted reaction in the trading that followed, though the Dow Jones and S&P 500 did both finish yesterday in the red. They’re looking to rebound to kick off trade this morning, however, with stock futures pointing to a notably stronger open across the board while the VIX is sharply lower, falling below 15.5 for the first time since last Tuesday. The dollar is in the red to start the day after pushing to a fresh six-week high of 100.35 yesterday, currently trading near 100.11 at the time of writing. Treasury yields are notably lower, particularly at the front-end of the curve, with 2-year yields back to 4.675%, 10-year yields at 4.949%, and 30-year yields at 5.307%. Crude oil is starting the day in the red, with nearby WTI down 1.9% to trade just above $100 at the time of writing, while nearby Brent is down a further 3.6% to trade near $102. Meanwhile, the ags are looking at a mostly lower open.

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