These are the stocks posting the largest moves before the bell.Market Insiderread more
But the bank's net interest margin, a key metric of bank profitability, falls short of expectations.Financeread more
The CEO of railroad operator CSX is sounding alarm on the U.S. economy, calling it "unusual" and "puzzling" as it weighs on the company's shipping volumes.Marketsread more
"Here's what I think is true: Google refused to work for the Pentagon on artificial intelligence" and it works on AI in China, says Richard Clarke.Technologyread more
Ascending triangle patterns have been appearing across the stock market, and they tend to be precursors to higher prices, says Miller Tabak's Matt Maley.Trading Nationread more
If the S&P 500 climbs another 4%, it will have doubled the peak reached in the previous bull market, Michael Santoli notes.Trading Nationread more
Here are the biggest calls on Wall Street on WednesdayInvestingread more
The EU opened a formal antitrust investigation into Amazon on Wednesday centered on how the e-commerce giant uses merchants' data.Technologyread more
Turo is a peer-to-peer car-sharing firm that is often referred to as the Airbnb for cars.Technologyread more
Mortgage interest rates surged last week to their highest level in a month, and consequently homebuyers turned on their heels.Real Estateread more
U.S. officials see the deal as a threat to NATO, for which Turkey provides the second-largest military.World Politicsread more
For as much as the Federal Reserve professes its independence, it is not immune to politics. Financial markets are well aware of this sensitivity and are beginning to rethink where the central bank is heading, following Donald Trump's shocking election victory.
Prior to Tuesday's election, Wall Street widely expected the Fed to enact its first rate hike in a year at the December Federal Open Market Committee meeting.
However, as it became clear that Trump was going to score an improbable victory over Democrat Hillary Clinton, the market recalibrated.
At one point overnight, traders had put their anticipation for the December fed funds rate — the Fed's target for overnight rates — as low as 0.45 percent, or just 4 basis points above its current rate. That would translate to a minimal probability for a hike next month.
"With the violent reaction being seen in financial markets, there's a good chance that a rate hike from the Federal Reserve is less likely in December," said Mark Hamrick, Bankrate.com's senior economic analyst. "The Fed has wanted to move further along the path toward normalization, or higher rates. As the election has demonstrated, we live in times that are anything but predictable."
But Fed horse-trading indeed is unpredictable itself. As the market began to digest the Trump victory, dire scenarios began to ease and futures trading changed.
The most recent level for the December funds contract implied a rate of 0.49 percent — which the CME said translates into a 71.5 percent chance of a hike, down about 5 points from Tuesday. The market more broadly struggled to make sense of what Trump's win meant, pushing short-term rates lower but sending longer-duration government debt yields substantially higher.
The prevailing wisdom from Wall Street analysts — none of whom predicted Trump's victory — was that the Fed is now more likely to be on hold.
"Insofar as there is a change in U.S. domestic policy, it will probably be towards looser monetary and fiscal policy which would provide a boost to global demand," Andrew Kenningham, senior global economist at Capital Economics, said in a note. "Fed officials will wait to see how things pan out in the coming weeks, but it now seems more likely that they will leave rates on hold in December."
He won't be able to do much about Yellen, whose term runs to February 2018, but he will be able to name as many as five new FOMC members in his first 18 months, according to an analysis by Goldman Sachs.
Markets will be watching closely to see the direction Trump takes the Fed at a critical time for monetary policy.
"When faced with volatility central banks tend to kick the ball further into the long grass," Quentin Fitzsimmons, T. Rowe Price global bond manager, said in a statement. "The Fed's credibility is going to be under pressure and that's an international story, not just a national story."