After the Federal Reserve hiked interest rates Wednesday for the first time since 2006, “Fast Money” traders picked apart the best ways to trade the move.
The central bank abandoned its near-zero interest rate policy, moving its short-term interest rate target 0.25 percent higher. The Fed also signaled its intention to normalize gradually.
Markets responded positively, with the S&P 500 rising about 1.5 percent to 2,073.07. Trader Dan Nathan contended that the index could “run out of steam” by the end of the week if it approaches 2,100.
Some financial stocks climbed in the wake of the decision, and trader Pete Najarian sees some “strength” in the Financial Select Sector SPDR Fund. It closed 1.6 percent higher Wednesday.
He noted, though, that financials could run into trouble if the yield curve flattens next year.
Others saw plays on the U.S. dollar. The greenback moved slightlyhigher in choppy trade after the decision Monday.