Hourly Market Review - Mar 20, 2024 11 AM

The S&P 500 was largely unchanged as investors awaited the Federal Reserve's latest policy decision. The Nasdaq Composite slightly dipped by 0.1%, and the Dow Jones Industrial Average marginally fell by 12 points. Intel saw a rise of over 1% following news of a $8.5 billion grant from the White House under the CHIPS Act. Chipotle Mexican Grill's stock surged nearly 7% after announcing a stock split.

The focus is on the Federal Reserve's rate decision, with expectations that interest rates will remain unchanged. Investors are particularly interested in the dot plot for indications of future rate cuts, with many anticipating a reduction in rates starting in June. However, there is concern that recent high inflation reports may lead to fewer cuts than expected.

Markets have adjusted their expectations, now anticipating the first rate cut to occur in June, with a total of three cuts expected from the current target range of 5.25%-5.5% for the Fed's benchmark overnight borrowing rate. This week's meeting will focus on the dot plot, which indicates individual members' expectations for rates through the end of the year and beyond. While there is no expectation of a rate cut at this meeting, the statement could indicate a shift in outlook and the criteria for future cuts.

The recent performance of the stock market has been positive, with the Dow having its best day since February 22, rising by 0.8%. The S&P 500 and the Nasdaq Composite also saw gains. However, there has been some weakness in tech stocks, leading to speculation about whether the rally in artificial intelligence is slowing as other market sectors gain momentum.