Tuesday's Market Recap - Fed Chair's New Hawkish Pivot Sends Stocks Tumbling.
- Nov 30, 2021
- 2 min read
What is The Premarket Telling Us?
Tuesday, November 30, 2021, 8:21 AM.
aS stock futures were started off weak, with Dow futures 368 points, Nasdaq down 81 points, and S&P futures down41 points, as the markets returned their focus to the Omicron variant. Testimony by Fed Chair Powell, and Treasury Secretary, Janet Yellen on Capitol Hill this morning, where Chairman Powell's new pivot to being hawkish on inflation, seems to have caught the market by surprise, meaning he is prepared to hasten the schedule of the taper.
On The Bond Desk:
The US 10 Year Bond Yield at 1.530%, up 0.048%.
Currency Desk:
Eurodollar: 1.13
UK Pound: 1.33
Crude Oil:
WTI crude oil futures $67.89/barrel, down 2.94%.
On the Earnings Calendar:
Salesforce reports earnings results after the closing bell this evening.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets closed were mostly lower today. Japan (Nikkei 225) down 1.63%, Shanghai up 0.03%, Hong Kong (Hang Seng) down 1.58%.
Major European markets ended with solid losses today. German (DAX) down 1.18%, France CAC 40 down 0.81%, London FTSE 100 down 0.71%.
Market And Sector Dynamics
Stocks opened the final trading day of November sharply lower. The Dow dived 275 points, Nasdaq fell 60 points, and S&P lost 33 points. Stocks were responding to a surprisingly hawkish Fed Chair Powell, who in testimony on Capitol Hill today, has clearly abandoned his long-held, dovish 'inflation is transitory' stance. He suggested that the economy was very strong, and it was time for the Fed to quicken the pace of the taper, by a few months. This new stance by the Fed Chair caught markets by surprise, which led to the massive selloff.
Even against the backdrop of the yet unknown threat of the new covid variant, Omicron, the Fed Chair suggested that the Fed would be moving forward. WTI crude oil also lost ground early, down 3.82%, to $67.28/barrel, and the US 10 Year Bond ticked lower at 1.443%, down 8.6 basis points.
Markets remained under pressure for the entire session and traded in negative territory for the whole day, to close just off the low of the day.
A markedly negative trading session, with all 11 S&P sectors ended with losses, led by Communication Services, Utilities, Consumer Staples, Industrials, Energy, Basic Materials, Financials, Real Estate, Healthcare, Consumer Discretionary, and Technology.
Factors Influencing Today's Market
Fed Chair Jerome Powell's pivot from dovish to hawkish spooked markets.
US 10 Year Bond ended the day at 1.453%, down 3.28%.
WTI crude oil closed the day at $66.91/barrel, down 4.35%
November Consumer Confidence was a lower than expected 109.5 vs 111.6 (revised for October).
Market Close Volume Traded And Advance Decline Ratio
US stocks tumbled on the final day of November. The Dow sank 652.22 points, Nasdaq plunged 245.14 points, and the S&P down 88.27 points. Total was NYSE volume traded a moderately heavy 6.77 billion shares. Declining shares outpaced Advancing shares by 3.83:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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