The S&P 500 Index ($SPX) (SPY) on Wednesday closed up +0.24%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.16%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.05%. March E-mini S&P futures (ESH25) rose +0.13%, and March E-mini Nasdaq futures (NQH25) fell -0.03%.
Stocks recovered from earlier losses as the 10-year T-note yield turned lower on the afternoon release of the FOMC minutes. The FOMC minutes indicated a rate-cut pause, but members discussed slowing or halting the 3-year process of reducing the Fed’s balance sheet (quantitative tightening) until a debt ceiling hike is resolved. The debt ceiling could cause problems in the money market that would be worsened if the Fed keeps reducing its balance sheet.
