“The stock market’s reaction tells you it is assuming the Fed will do what needs to be done. There’s nothing in the minutes that precludes another rate cut.”
– James Glassman (subscription required), Senior Economist, JP Morgan
The Fed’s minutes came out at about 2pm Eastern time (11am PST) and as you can see from this intraday chart, the market liked what it heard. The S&P rallied almost 10 points in the hour and 15 minutes after the release of the minutes.
The S&P is now up about 13% from the Thursday August 16th bottom (8 weeks ago) (3 month chart).
It seems like forever but less than 8 weeks ago it seemed like the world was ending. Now it seems as if everything is fine and there is nothing to worry about.
The stock market has the memory of a 2 year old.