Fed Flips the Script on Wednesday's Session

Apparently, the Fed’s 2% inflation target isn’t the tripwire to more hikes as was previously feared. In the minutes released today, Fed Chair Powell and friends suggested that “a temporary period of inflation modestly above 2%” would be tolerable.

In other words, the market heard that breaching 2% inflation won’t immediately trigger the dreaded fourth rate hike of 2018 (a hike in June is widely expected).

This dovish news flipped the market’s script on Wednesday. The major indices started the session in the red on growing pessimism over trade talks with China and the June summit with North Korea. But a late surge after the minutes brought stocks onto positive ground.

The NASDAQ advanced 0.64% to 7426, while the S&P increased 0.32% to 2733.3. The Dow was under by more than 150 points at its worst but finished with a gain of 0.21% to 24,886.8.