Executive Mosaic’s GovCon Index fell 1.86% to $136.11, and U.S. stocks slumped following the Feds’ hike pause but “higher rates for longer” warning on mid-week. The Dow Jones Industrial Average lost 370.46 points (1.08%), the tech-heavy Nasdaq Composite tumbled 1.8%, and the S&P 500 Index registered its worst drop (1.6%) since March 2023.
However, the ten-year Treasury yield climbed to 4.48%, its highest level since 2007. The Federal Reserve voted to maintain the main policy rate range of 5.25% to 5.5%, but agreed that lending must remain higher for longer to control inflation fully.
Fed Chairman Jerome stated during the press conference, “We are prepared to raise rates further, if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving sustainably toward our objective.”
Only one of the 30 GCI constituents, V2X Inc. (NYSE: VVX), advanced and finished in positive territory. The top three decliners, Palantir Technologies Inc. (NYSE: PLTR), Carlyle Group Inc. (Nasdaq: CG), and Globalstar Inc. (NYSE: GSAT), lost by more than 4.5%.
The next Federal Open Market Committee (FOMC) meeting is on October 31, 2023, and the interest rate decision will follow on November 1, 2023. Many economists fear a deep recession, although the Feds are optimistic about hitting their 2% target and achieving a soft landing.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 136.11 | -2.54 | -1.86% |
| Dow Jones Industrial Average | 34,070.42 | -370.46 | -1.08% |
| S&P 500 | 4,330.00 | -72.20 | -1.64% |
| NASDAQ | 13,223.99 | -245.14 | -1.82% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| VVX | 50.2 | 0.40 | 0.80% |
| LHX | 173.94 | -0.71 | -0.41% |
| NOC | 437.11 | -3.07 | -0.70% |
| FLR | 37.4 | -0.31 | -0.82% |
| BA | 199.95 | -2.42 | -1.20% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| VVX | 50.2 | 0.40 | 0.80% |
| GSAT | 1.24 | -0.06 | -4.62% |
| FLR | 37.4 | -0.31 | -0.82% |
| CAE | 23.77 | -0.60 | -2.46% |
| LHX | 173.94 | -0.71 | -0.41% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 14 | -0.74 | -5.02% |
| CG | 30.47 | -1.50 | -4.69% |
| GSAT | 1.24 | -0.06 | -4.62% |
| CSCO | 53.34 | -2.16 | -3.89% |
| BAH | 107.64 | -3.94 | -3.53% |
