|  | | | | | | The stock market really hates Fed Chairman Jerome Powell
- The stock market's reactions to the Federal Reserve's decisions under Chairman Jerome Powell have been negative across the board, according to an analysis from Bespoke Investment Group.
- "The S&P 500 has now fallen for a record 7th straight Fed Day, which is a streak that began when Powell became Chair," the firm wrote in a note to clients on Wednesday afternoon.
- The stock market turned sharply lower Wednesday after Powell spoke at his press conference that followed the Fed's latest interest-rate hike.
The stock market really doesn't like Federal Reserve Chairman Jerome Powell.
The S&P 500 has posted a loss each day the Fed has announced an interest-rate decision under Powell's watch — a record seven straight Fed days — according to an analysis from Bespoke Investment Group.
"That's not a great track record so far!" the firm wrote in a note to clients Wednesday afternoon, illustrating the stark difference in the market's behavior under Powell compared with his predecessors.
The stock market turned sharply negative Wednesday, erasing earlier gains, after the central bank said it would hike interest rates to a target range between 2.25% and 2.5%, a move that was widely expected. The hike marked the fourth of 2018 and the ninth since the Fed's tightening path began in 2015.
The S&P's 1.54% decline on Wednesday was the 19th time the index fell more than 1% on a Fed decision day and the most negative reaction to a Fed decision since September 21, 2011, when the index fell 2.94%, according to Bespoke.
Powell's predecessor, Janet Yellen, saw five interest-rate hikes through her tenure as Fed chair, the first of which came in December 2015. Powell has now seen four hikes under his watch.
The latest rate hike comes at a particularly late stage in the current cycle, while the economy also grapples with unknowns related to the US-China trade war. Stocks have also gotten hit hard in recent months, with the S&P 500 on track for its worst fourth quarter since 1932, according to a UBS analysis.
Powell was thought to stoke the stock market's miserable month of October, with commentary suggesting the central bank was a "long way" from neutral on interest rates.
The S&P was down 9.2% since Powell became Fed chairman on February 5. The market took a nosedive that day.
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