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Oct 29 2015

Stocks pull back after Wednesday’s Fed-fueled rally

Market Recap 10/28/15:

U.S. stocks rallied on Wednesday after comments from the Federal Reserve suggested that the central bank could raise interest rates in December. Trading was volatile after the announcement, which also downplayed the impact of global economic headwinds, with stocks falling in the immediate aftermath of the release. The Fed has said it would raise rates when it deems the economy strong enough to withstand such a move; that it views the economy as that strong is what fueled the afternoon rally, even though the current low-rate environment has been a major contributor to equity gains over recent years. The comments seemed to shift the timeline for changes in rate policy; many investors had expected the central bank would hold off until 2016 before raising rates, or perhaps even later. Also fueling the day’s gains was Apple (AAPL), which rallied a day after reporting stronger-than-expected results.

Looking ahead:

U.S. stock index futures fell on Thursday, pulling back from the previous session’s gains, though hints of merger activity could boost sentiment in the healthcare space after media outlets reported that Pfizer (PFE) would be making a bid to buy Allergan (AGN). Investors are also looking ahead to an estimate on third-quarter gross domestic profit, as well as weekly jobless claims, both of which will be released before the market opens. Make sure you don’t miss this week’s Money Matters with Gary Goldberg, where the guest will be former Russian chess Grandmaster Garry Kasparov, who will be discussing his book, Winter is Coming: Why Vladimir Putin and the Enemies of the Free World Must be Stopped. The show will air Sundays at 11 on WOR710. Visit our website www.ggfs.com for more details.