Fed stands pat; stocks tumble 📉

Rate cuts might still be a ways off...

Good Afternoon! 

Hey, everyone. It's Adam from Elite Trade Club. 

Here’s what moved the market today.

Markets 📈

Stocks sold off after the Federal Reserve held rates steady at its January meeting. Tech stocks and small-caps were among the hardest-hit sectors.

  • S&P 500 [-1.6%]

  • Dow [-0.8%]

  • Nasdaq [-2.2%]

  • Russell 2K [-2.4%]

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Now, another opportunity could be brewing in this promising sector that could send several stocks skyrocketing.

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Market-Moving News 🔎 

📉 Fed Holds Rates Steady; No Rush to Cut

The Federal Reserve's latest policy decision has left the financial world abuzz. Keeping its benchmark federal-funds rate unchanged between 5.25% and 5.5%, the Fed has opened the door to future rate cuts while emphasizing caution and a need for confidence in inflation control.

🚦 Strategy Shift: 
The central bank's policy statement hinted at a balancing act. It moved away from its previous stance favoring "additional policy firming" (read: rate hikes) to a more neutral position.

Now, the Fed is considering "adjustments" to the rate, signaling a more open approach based on economic outlook changes.

🔍 Between the Lines: 
Despite this shift, the Fed made it clear that a rate cut isn't just around the corner.

The statement emphasized the necessity for greater confidence in inflation moving sustainably towards its 2% target before considering a rate reduction.

⚖️ Powell's Prudence: 
Back in December, Fed officials predicted up to three rate cuts for 2023 if inflation continued to decline and economic growth remained steady.

However, Fed Chair Jerome Powell, during a news conference, highlighted the unpredictable nature of the economy post-pandemic and the non-assured journey towards the 2% inflation goal.

🗓️ March Cut: Doubtful 
Powell specifically downplayed the likelihood of a rate cut in the upcoming March meeting, suggesting that the Fed is unlikely to gain enough confidence in inflation trends by then.

🔁 Tread Lightly: 
This decision marks the fourth consecutive policy meeting where the Fed has maintained its benchmark rate, reflecting an ongoing cautious approach amidst economic uncertainties.

🧘‍♀️ Balanced Stance: 
With the Fed's latest move, the focus shifts to carefully observing economic indicators and inflation trends, with the central bank signaling a readiness to adjust its strategy as needed, but not hastily.

Top Winners and Losers 🔥

Infobird [IFBD] $1.36 (+115.8%)
filed a Form 6K that included a proxy statement and other documents. A trading halt was lifted just 10 minutes before the closing bell.

Guardion Health [GHSI] $8.38 (+62.7%)
agreed to sell its Doctor’s Best business unit to a wholly-owned subsidiary of Kingdomway USA for $17.2 million cash.

Minim [MINM] $4.10 (+61.4%)
skyrocketed after a Schedule 13D filing revealed David Lazar had amassed a controlling 51% stake in the company.

Deep Medicine SPAC [DMAQ] $2.96 (64.7%)
sold off after shareholders voted to approve its merger with TruGolf earlier this week.

Nuvve [NVVE] $1.24 (62.8%)
announced the pricing of a $9.6 million underwritten public offering.

NY Community Bank [NYCB] $6.47 (37.6%)
posted weaker-than-expected earnings results this morning and cut its dividend by a whopping 71%.

That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback from our members!

Thanks for reading. I'll see you at the next open! 

Best Regards,
Adam G.
Elite Trade Club

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