US stocks moved lower after Fed says a March cut is not the base case

<p>There has been a knee-jerk reaction in the stock market to Fed comment that a March cut is not the base case. </p><ul><li>The NASDAQ index is now down -1.67%. </li><li>The S&amp;P is down -1.28%, and </li><li>the Dow Industrial Average is down -0.48%.</li></ul><p>In the Forex, </p><ul><li>The EURUSD is trading to a new low on the day and looks to retest the 50% midpoint of the move up from the October low. That level comes in at 1.07936. Below that the 100-day moving average is at 1.0774.</li><li>The GBPUSD is moving away from its 100 and 200 hour moving averages near 1.2700 and is retesting its 50% midpoint of the move up from the December low at 1.26629.</li><li>The USDJPY is back above swing areas that 146.96 – 147.067. The 100-day moving average is up at 147.62. That is nearly 100 hour moving average and 200 hour moving averages as well.</li></ul><p>The March rate cut expectations is down to 30% from around 50% prior to comment from Powell. The expectations for a cut are now pushed out to May.UPDATE:</p><ul><li>Dow -195.4 or -0.51% at 38287</li><li>S&amp;P index -59.31 points or -1.20% at 4864</li><li>NASDAQ index -265 points or -1.70% at 15240.69</li></ul><p>US yields remain lower on the day:</p><ul><li>2-year 4.260% -9.9 basis points</li><li>5-year nte for 3.902% -9.4 basis points</li><li>10 year 3.984% -7.3 basis points.</li><li>30-year 4.234% -4.3 basis points</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.