The major U.S. stock indexes were mixed on Wednesday, but were still hovering near record-highs as investors awaited the Federal Reserve’s meeting minutes, while digesting the results of the Alabama Senate race.
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It is widely expected that the Fed will announce an interest rate hike, when they release their meeting minutes at 2:00 p.m. ET Wednesday. However, investors will look to the minutes and Federal Reserve Chair Janet Yellen’s commentary for any clues into the number of rate hikes likely in 2018. This will be Yellen’s last policy-setting meeting before Jerome Powell will take the helm in February.
It is expected that Powell will continue a rate hike strategy similar to Yellen’s. Still, it is important to note that going into 2018 the Fed’s moves are important to the market performance. According to the Wells Fargo Investment Institute, the potential for the Fed to hike rates “more aggressively than we expect” is one of the big market risks for 2018.
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Meanwhile, in Alabama, Democrat Doug Jones defeated Republican candidate Roy Moore in the Senate election. Jones garnered 49.9% of the votes to Moore’s 48.4%, according to Fox News. The win will narrow the GOP’s lead in the Senate to a 51-49 majority, and this slim advantage could make it harder for President Donald Trump to pass his agenda.
Also on Wednesday, Trump is expected to give a speech on tax reform, a part of Trump’s agenda that is seen as a key component for the market rally to continue.
