U.S. stocks are showing some signs of life Wednesday as investors wait for the Federal Reserve’s next policy decision. After failing to rebound on Tuesday, all the major indices are strong in the green so far today.
The Fed is widely expected to hold interest rates steady, but that’s not what traders are focused on. The real question is…
What comes next?
Investors want clues on where rates might go in the coming months, especially as stagflation and recession fears creep back into the conversation.
Fed Chair Jerome Powell’s press conference at 2:30 p.m. ET will be key.
He’ll need to strike a balance between optimism about growth and concern about inflation. Meanwhile, markets are also watching how Trump’s economic policies — tariffs — and Elon Musk’s DOGE-led government-shrinking initiatives could shape the Fed’s outlook.
CBOE Global Markets (CBOE) Moving Higher
CBOE Global Markets (CBOE) has stayed strong during the recent stock market bearishness and has been moving up lately.
The stock has been on a tear in 2025, and it’s not hard to see why.
With volatility running high and options trading hitting record volumes, CBOE — one of the biggest options exchanges — has been cashing in.
More traders are turning to options for both speculation and hedging, and that surge in demand has boosted the company’s revenue and profits. In a market where uncertainty rules, CBOE has been one of the biggest winners.
At the same time, our Newton Indicator is in bullish mode. It’s gone from yellow to green in the past three days.
This indicates it has excellent positive momentum and could be ready to make a move to new highs.
Church & Dwight (CHD) Turning Bearish
On the opposite side, Church & Dwight’s (CHD) momentum has turned sour.
Church & Dwight (CHD) has been struggling in 2025, and a big reason is pressure on consumer staples. While typically a defensive play, rising interest rates and shifting consumer spending habits have hit CHD hard.
Shoppers are trading down to cheaper private-label brands, squeezing margins on household essentials like Arm & Hammer and Trojan. With the broader market looking for growth plays, investors have been rotating out of slow-growing defensive stocks like CHD, leading to its underperformance this year.
And after a brief surge, the Newton Indicator shows momentum has gone from green to yellow to red in a short period of time. It looks like it has significant bearish momentum.
The bottom line is that markets are attempting a recovery, but all eyes are on the Fed’s decision and Powell’s commentary on future cuts. With concerns over inflation, economic growth and global tensions rising, the next move could set the tone for where stocks head next.
Graham Lindman
Graham Lindman Trading
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