Wednesday's Market Recap - Stocks Tanks After FOMC Hike Rate As Expected.
What is The Premarket Telling Us?
7:00 AM.
This mornings market setup is looking very positive at this time. Dow futures up 180 points, Nasdaq futures up 51 points, and S&P futures up 19 points.
On The Bond Desk:
The US 10 Year Bond Yield at 2.82%, down 0.04%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.26
Crude Oil:
WTI crude oil futures at $46.49/barrel, 0.24%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were mostly lower. Japan (Nikkei 225) down 0.60%, Shanghai down 1.05%, Hong Kong (Hang Seng) up 0.20%
Major European markets ended higher in their sessions. German (DAX) gained 0.24%, France CAC 40 up 0.49%, London FTSE 100 added 0.96%.
Market And Sector Dynamics
Stocks opened modestly higher with the Dow up 38 points, Nasdaq 5 points, and the S&P up 2 points. Investors are exercising caution ahead of the Fed/FOMC interest rate decision, due out later this afternoon. The market is expecting a twenty five basis point rate hike.
Markets gradually pushed higher during the morning session, as investors anticipated a dovish Fed, to hike rate later this afternoon. How the market will react is another question, all together. The Dow was up more than 300 points during the morning session.
At 2:00 PM, the Fed announced its twenty five basis point rate hike, and stock fell initially, but recovered a short while later. However, stocks continued its decline a short while later during the Fed Chair Jerome Powell's press conference and Q&A session.
The selloff was orderly but broad based, with all eleven S&P sectors closing with significant losses. Energy, Consumer Discretionary, Technology, Industrials, Consumer Staples, Healthcare, and Materials.
Factors Influencing Today's Market
Federal Reserve hiked interest rates by 25 basis points, and the markets sold off hard, suggesting the Fed was less dovish than expected.
Crude oil regained some ground today. WTI crude oil closed the day at $47.20/barrel, up 2.08%.
This week's EIA Petroleum Status Report shows crude oil inventories fell 0.5 million barrels, to 441.5 million barrels.
Major Asian markets closed their session lower.
Market Close Volume Traded And Advance Decline Ratio
At the end of the session, all the indices descended into further into bear market territory. The Dow sank 351 points, Nasdaq was down 147.08 points, and the S&P fell 39.20 points. Total NYSE volume traded, a moderately heavy 5.06 billion shares. Declining shares outpaced Advancing shares nearly 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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