Tuesday's Market Recap - Hawkish Comments From A Dovish FOMC Member Took Stocks Down.
- cashtonsaunders
- Apr 5, 2022
- 2 min read
What is The Premarket Telling Us?
Tuesday, April 5, 2022, 6:48 AM.
Stock futures were modestly in the red shortly before the top of the hour. Dow futures down 89 points, Nasdaq futures down 45 points, and S&P futures down12 points. Asian markets ended higher in their sessions overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 2.412%, up 0.0350%.
Currency Desk:
Eurodollar: 1.09
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $104.56/barrel, up 1.24%
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets closed higher overnight. Japan (Nikkei 225) up 0.19%, Shanghai up 0.91%, Hong Kong (Hang Seng) up 2.10%.
Major European markets closed mixed today. German (DAX) down 0.65%, France CAC 40 down 1.28%, London FTSE 100 up 0.72%.
Market And Sector Dynamics
The US markets were mixed at the open, as investors brace for more crushing sanctions on Russia by the US and its allies, after sickening images of atrocities committed by Russian soldiers in Bucha, while they retreated from that town near Kyiv. Images of dead civilians littered the streets, some with hands and feet bound and shot in the head. The Dow fell 90 points, Nasdaq was up 271 points, and the S&P down 13 points. WTI crude oil ticked up 0.80%, to $104.11/barrel.
The Dow reached a high of around 180 points half an hour after the open, but turned lower a short while later, after comments from Fed Governor, Lael Brainard, a long-considered dovish member of the FOMC, suggested that inflation was too high, and needed to be tamed, with interest rate hikes, and shrinking of the Fed's balance sheet. Markets sold off on that news, and hugged the flat line during the early afternoon session, but sold off steadily during the last two hours of the session.
Seven of eleven S&P sectors ended with losses in today's session, led by Consumer Discretionary, Technology, Energy, Industrials, Communication Services, Basic Materials, and Financials. Utilities, Healthcare, and Real Estate.
Factors Influencing Today's Market
Fed Governor, Lael Brainard, a dove on the FOMC, has turned hawkish about controlling inflation.
US 10 Year Bond Yield closed today at 2.554%, up to 6.73%.
WTI crude oil ended today at $101.05/barrel, down 2.16%.
Final read on March PMI came in at 57.7 just shy of the 58.5 consensus estimate.
Market Close Volume Traded And Advance Decline Ratio
Stocks tanked in today's trading with all three indexes closing with significant losses. The Dow lost 280.70 points, Nasdaq lost 328.39 points, and the S&P lost 57.52 points. Total NYSE volume traded was a modest 4.80 billion shares. Declining shares outpaced Advancing shares by 4.19:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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