Friday's Market Recap - Stocks Plunged On Fear That Feds Could Hike In Interest Rates Sooner.
- cashtonsaunders
- Jun 18, 2021
- 2 min read
What is The Premarket Telling Us?
June 18, 2021 7:30 AM.
Ahead of this morning's opening, US stock futures are mixed to mostly lower, with Dow futures down 108 points, Nasdaq futures up 3 points, and S&P futures down 11 points. Asian markets ended mixed while we slept.
On The Bond Desk:
The US 10 Year Bond Yield ticked lower to 1.49%, down 2.1 basis points.
Currency Desk:
Eurodollar: 1.18
UK Pound: 1.38
Crude Oil:
WTI crude oil futures were slightly lower at $70.66/barrel, down 0.53%.
On the Earnings Calendar:
Adobe reported strong quarterly earnings after the close of trading yesterday. The company handily beat earnings and revenue expectation, sending shares higher in the aftermarket and premarket trading.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed. Japan (Nikkei 225) down 0.19%, Shanghai slipped 0.01%, Hong Kong (Hang Seng) up 0.71%.
Major European markets ended convincingly lower in their session. German (DAX) lost 1.78%, France CAC 40 down 1.46%, London FTSE 100 down 1.90%.
Market And Sector Dynamics
Trading remains choppy after the Fed's decision on Wednesday. Markets opened sharply lower with the Dow 400 points, Nasdaq down 64 points, and the S&P fell 35 points. WTI crude oil began the day at $71.00/barrel, down 0.25%. Stocks continued to decline during the morning session with the Dow down more than 500 plus points, ninety minutes after the start of trading. The index rebounded off the lows a short while later, with the Dow down in the 400 plus range for most of the remaining session, before sell off again into the close.
Hawkish comments from non-voting FOMC governor, James Bullard, this morning, sent markets plummeting lower, after he suggested that the Fed could start hiking interest rates in 2022, instead of 2023 as was indicated by the FOMC after it's June meeting, on Wednesday. This heightened the nervousness in the markets after the Fed's meeting on Wednesday, and provided a catalyst for today's steep sell off.
All eleven S&P sectors ended the trading session lower, led by Energy, Utilities, Financials, Consumer Staples, Basic Materials, Real Estate, Industrials, Healthcare, Communication Services, Technology, and Consumer Discretionary.
Factors Influencing Today's Market
Fed Governor, James Bullard hawkish comments on the potential for earlier than expected interest rate hike.
US 10 Year Bond Yield ended the day at 1.443%, 4.48%.
Asian market ended mixed today, while European markets ended with solid losses.
WTI crude oil closed today at $71.40/barrel, up 0.51%.
This week's Baker Hughes US Oil Rig count rose 8 rigs to 373 total rigs.
Market Close Volume Traded And Advance Decline Ratio
The three major indexes all tanked at the close of trading today. The Dow plunged 533.37 points, Nasdaq sank 130.97 points, and the S&P fell 55.41 points. Total NYSE volume traded, a heavy 6.19 billion shares. Declining shares outpaced Advancing shares by 2.38:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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