From Investing.com: 2025-01-29 02:23:00

Stocks closed higher today with the S&P 500 gaining around 90%. Technology names bounced back, while the RSP moved lower, giving back previous gains. The RSP remains near resistance at the 61.8% retracement level, indicating a rebound until it breaks out higher.

The outcome of today’s Fed meeting will impact interest rates and the yield curve. If the Fed signals no further rate cuts, the yield curve may steepen. The 1-Day implied volatility trades around 13, indicating a potential muted market move post-FOMC. The VIX also decreased, lowering implied correlation.

Low implied correlation levels may signal short-term market tops, especially post-earnings. Market reaction post-Fed may depend on Powell’s tone, potentially causing implied volatility to spike.



Read more at Investing.com: Bear Steepening Set to Resume if Fed Holds the Line on Rate Cuts