Why the Stock Market Fell Today

Yesterday both Nasdaq & the Dow Jones indices had their best day of the year so far. Nasdaq went up by about 600 points while Dow skyrocketing an impressive 1,000 points. 
Today, both indices have had their worst day in the year so far. Nasdaq having dropped 700 points while the Dow being down 1,100 points so far. 

Jerome is a Liar. I'll tell you why. Yesterday the Fed hiked the Rates by 50bps as expected. Jerome then gave a speech on the state of the economy and how the decision to hike the rates was arrived at and talked about the key indicators that would influence their decision on future hikes.
If you missed it you can watch it here. 

Being the Face of the Fed, Jerome Powell did what he does best which is create optimism during times of uncertainty. Yesterday's massive gains in the stock market were what I'd love to call "short-term relief" meaning things are still bad but here comes Powell to give investors & citizens a Ray of hope. Such effects usually don't last that long and according to me that's why I can say today people woke up to the reality of how bad things are causing the massive sell-off in the stock market. Knowing such information pre-hand (info about how short term relief doesn't do the trick), I decided to keep off from trading the indices.

Thanks :) 

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