Historically, the single best day to own stocks is any day the Federal Reserve makes a decision.
Many in the market are worried about Powell being hawkish again today but during his term he has proven time and time again that he is more likely to be bold.
There will be eyes today on the dots, which are likely to remove a dot or two. That is already priced and well understood in the market. The fear is that Powell is completely committed to maintaining or even hints at future increases.
The reason it is unlikely is that the Fed does not know what is coming from Washington. Trump is saying a lot of things and the market is not taking many of them seriously but the range of possibilities in terms of tariffs and retaliation is still wide. Besides, anything could happen in Ukraine.
Powell will want to keep his options open and that is more likely to be dovish.
Finally, the S&P 500 was up 0.3% and the Dow was up 0.5% as it tried to snap a nine-day losing streak.
