Stocks traded mostly lower Thursday but technology shares bucked the trend after the Federal Reserve indicated it would tighten monetary policy earlier than previously expected.
The Fed left interest rates unchanged on Wednesday but signaled it expected to boost interest rates two times by the end of 2023, earlier than Wall Street had anticipated. Stocks finished lower Wednesday.
Stocks Fall but It's Not Just Because of the Fed
Stocks are lower this week because of seasonality, not because of the Federal Reserve, TheStreet's Jim Cramer said from the floor of the New York Stock Exchange on Thursday.
"We heard from Dave Tepper, who I think is one of the best money managers alive, saying that things are fine and that the Fed is doing the right thing. And I am with him," Cramer said.
The number of Fed governors who expect rate hikes as early as 2022 - known as the dot plot - went to seven from four, essentially translating into two rate hikes in 2023 based on growth and inflation projections from the 18 members of the Federal Open Markets Committee.
Here's Why Cramer Trimmed AAP's Ford Position
Cramer says the semiconductor shortage and a seasonally weak period are the reasons that his Action Alerts PLUS charitable trust team decided to trim its position in the company.
Ford Motor said Thursday that its current-quarter earnings would exceed forecasts even as it cautioned on the uncertainty linked to a global shortage of semiconductors.