# Worst 'Fed day' market drop since 1994 — ride the downward momentum on the S&P 500

_AI-generated trading idea · SHORT · SPXS, SPY_

> Canonical page: https://commonquant.ai/research/for-you/worst-fed-day-market-drop-since-1994-ride-the-downward-momen--d70aa8e1-c57e-41bb-b6d3-56bd5a501eb7

Stocks tanked in the worst reaction to a new Fed chair's first day since 1994. The drop was triggered by the Fed suggesting interest rates might go up later this year rather than come down.

## Idea

Higher interest rates make borrowing more expensive for companies, which tends to hurt stock prices. With the new Fed chair's very first day resulting in a market plunge not seen since 1994, traders are clearly spooked. Because the Fed is now openly talking about rate hikes, the downward pressure on the broader stock market will likely continue as investors sell shares to move their cash into safer, high-yielding bonds.

## Key details

- Symbols: SPXS, SPY
- Timeframes: 1H
- Tags: \#macro, \#stocks, \#trend\_following

## Community

- Upvotes: 14
- Views: 0
- Copies: 0
- Cosigns: 0

## News sources

- [Warsh experiences worst 'Fed day' S&P 500 performance for a new chair since 1994](https://www.cnbc.com/2026/06/17/warsh-fed-meeting-stock-market.html) — CNBC
- [US Yields Jump as Fed Dot Plot Boosts Trader Bets on a 2026 Rate Hike](https://www.bloomberg.com/news/articles/2026-06-17/us-yields-jump-as-fed-dots-boost-trader-bets-on-a-2026-rate-hike) — Bloomberg

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