Friday's Market Tear Sheet - Powell's Use Of Word "Pain" In Hawkish Comments Sends Stocks Reeling.
- cashtonsaunders
- Aug 26, 2022
- 2 min read
What is The Premarket Telling Us?
Friday, August 26, 2022, 7:00 AM.
Futures were mildly lower early with Dow futures down 93 points, Nasdaq futures down 68 points, and S&P futures down17 points, ahead of Fed Chair Powell's remarks in Jackson Hole, later this morning. Major Asian markets ended their Friday session mixed.
On The Bond Desk:
The US 10-Year Bond Yield at 3.026%
Currency Desk:
Eurodollar: 1.00
UK Pound: 1.18
Crude Oil:
WTI crude oil futures at $93.89/barrel, up 1.48%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed Japan (Nikkei 225) up 0.57%, Shanghai down 0.31%, Hong Kong (Hang Seng) up 1.00%.
Major European markets closed lower. German (DAX) down 2.26%, France CAC 40 down 1.68%, London FTSE 100 down 0.70%.
Market And Sector Dynamics
Fifteen minutes after the markets opened, stocks were mixed, ahead of Chairman Powell's expected comments in Jackson Hole scheduled for ten AM. The Dow was up 36 points, Nasdaq down 24 points, and S&P was down 3 points. WTI crude oil opened at $93.03/barrel, up 0.58%, meanwhile, the US 10 Year Bond Yield hovered unchanged, around the 3.03% level.
Stocks took a leg lower after Chairman Powell's comments, which the markets interpreted as very extremely hawkish. He stated that they remained data-dependent, but inflation was entrenched across the economy and, "We must keep at it until the job is done." The Chairman also stated that they understood their actions would cause pain for the economy, businesses, and households, but it would be much better to accept a little pain now, to avoid, even more pain, if the economy went into a deep recession. The markets went south after the Chairman's admittedly brief, but hawkish comments, gaining downward momentum to close at the low of the day.
All eleven S&P sectors ended the day with losses. Market tone was very negative, and the selloff was broad-based and deep. The leaders were: Technology, Communication Services, Consumer Discretionary, Industrials, Basic Materials, Financials, Healthcare, Real Estate, Consumer Staples, Utilities, and Energy.
Factors Influencing Today's Market
Brief extremely Hawkish remarks from Fed Chairman Powell in Jackson Hole sends stock tumbling lower.
Major Asian markets were mixed and European stocks were lower.
US 10-Year Bond Yield closed at 3.03%, down 0.06%.
WTI crude oil closed Friday at $93.06/barrel, up 0.58%.
This week's Baker Hughes US oil rig count rose 4 to 605 rigs total.
Market Close Volume Traded And Advance Decline Ratio
Markets plunged significantly lower in today's trading, after painfully hawkish comments from Fed Chairman, Jerome Powell. At the close, the Dow lost 1008.38 points or 3.03%, Nasdaq sank 497.56 points or 3.94%, and the S&P lost 141.46 points or 3.37%. Total NYSE volume traded was a light 3.85 billion shares. Declining shares outpaced Advancing shares by 6.41:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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