Looking for a reason why the Dow Jones Industrial Average today slipped 84 points? Look no further than New York Federal Reserve Bank President William Dudley.
Dudley drew traders’ attention today when he announced that an interest rate hike is “possible” in September. Of course, what Dudley didn’t say is that while possible, the probability of such a rate hike is extremely low, at least in the expectations of the markets.
According to CME FedWatch, there is just a 2% probability that the central bank will increase rates during the next FOMC meeting. So, yes, it’s possible… just very unlikely.
With the Dow Jones, the S&P 500, and the Nasdaq all declining after the three indices hit all-time highs on Monday, investors want to know if now is the time to sell.
Money Morning Capital Wave Strategist Shah Gilani offered his take this morning during an appearance on FOX Business Network‘s “Varney & Co.”
“It’s not time to sell,” Shah said. “It’s time to start getting very cautious and perhaps put on some hedges. The market has too much momentum going higher. Chances are it has a good way to go higher.”
In fact, the small sell-off today created several opportunities for investors. Before we get to the breakout possibilities, check out the results for the Dow Jones,S&P 500, and Nasdaq:
Dow Jones: 18,522.02; -84.03;Â -0.45%Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
S&P 500: 2,178.15; -12.00;Â -0.55%Â
Nasdaq: 5,227.11; -34.90;Â -0.66%
Now, here’s the top stock market news today and related opportunities…
DJIA Today: Dow Slips as Traders Weigh Possible Rate Hike in September
The Dow Jones Industrial Average fell 84 points on Tuesday after investors weighed Dudley’s statement on interest rates. Tomorrow, the U.S. Federal Reserve will release the minutes from its July meeting on monetary policy. Inside, traders will be seeking clues about the central bank’s expectations for the labor market and inflation. Dudley’s statements were surprising given this morning’s announcement that inflation levels fell to their lowest since February.
