Monday, stocks fell in Asia 0.5% and in Europe 0.9%. In the U.S., they closed unchanged on moderate volume as the VXO dropped 9% to close at 9.45. Tuesday, stocks rose 0.4% in Asia and the U.S, and in Europe 0.5%, on low volume. The two-day decline of the FANGs reversed. That should give the FOMC a clear view that they are in bubble territory and clear the way for a rate rise in Wednesday’s meeting.
Wednesday, the FOMC raised the target interest rate by 0.25% and announced a schedule to very slowly unwind its balance sheet. Stocks rose slightly in Asia, fell 0.4% in Europe, and closed little-changed in the U.S. on moderate volume. The 10-Year U.S. Treasury Bond yield fell 3% to close at 2.14 and precious metals miners also fell 3%.
Thursday, stocks fell 0.6% in Asia, and 0.3% in Europe and the U.S. on moderate volume. The VXO rose 7% to close at 9.73. Friday, stocks closed virtually unchanged in Asia, gained 0.6% in Europe, and rose 0.3% in the U.S. on very high volume but fairly normal for an options-expiration day. The VXO dropped 9% to close at the unsustainable level of 8.89. The Dow managed a record closing high every day but Wednesday, while the S&P achieved record closes Monday and Tuesday — despite NASDAQ high fliers showing some weakness.