Wednesday's Market Recap - Fed/FOMC Still Dovish On Interest Rates, And Taper. Stocks Sold Off.
- cashtonsaunders
- Jun 15, 2021
- 2 min read
What is The Premarket Telling Us?
June 16, 2021 7:30 AM.
US stock futures are looking for direction this morning, ahead of the Fed's policy announcement due later today. Dow futures are down 52 points, Nasdaq futures up 12 points, and S&P futures down 2 points. Asian markets ended lower in their sessions.
On The Bond Desk:
The US 10 Year Bond Yield 1.491%, down 0.8 basis points.
Currency Desk:
Eurodollar:1.21
UK Pound:1.41
Crude Oil:
WTI crude oil futures at $72.37/barrel, up 0.35%.
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 their session lower. Japan (Nikkei 225) down 0.51%, Shanghai down 1.07%, Hong Kong (Hang Seng) down 0.70%.
Major European markets ended mixed in their session. German (DAX) down 0.12%, France CAC 40 up 0.20%, London FTSE 100 up 0.17%.
Market And Sector Dynamics
The markets opened mixed this morning, as investors held back in anticipation of the Fed's policy decision announcement later this afternoon. The Dow was down 20 points, Nasdaq down 23 points, and the S&P was up a fraction 0.75 point. WTI crude oil started the day slight lower at $72.07/barrel, down 0.07%, and the US 10 Year ticked down 1.491%, down 0.8%.
The Dow tracked just below the flat line for most of the morning and early afternoon session, before falling precipitously shortly after the Fed's policy announcement at 2:00 PM, which saw the Dow falling to 375 points.
As Fed Chair Powell continued his press conference the markets gradually recovered, with the Dow down only 150 points around 3:30 PM., before falling again into the close.
In today's selloff ten of the eleven S&P sectors ended the session with losses, led by Utilities, Consumer Staples, Basic Materials, Industrials, Real Estate, Communication Services, Technology, Energy, Healthcare, and Financials. Consumer Discretionary was the only sector that finished in positive territory today.
Factors Influencing Today's Market
The Fed/FOMC kept interest rates at their existing level, and remains dovish, and has no immediate plans to taper its bond buying regime.
US 10 Year Bond Yield closed today at 1.581%, up 6.15%.
WTI crude oil price ended today at $71.47/barrel, down 0.90%.
This week's EIA Petroleum Status Report show US crude oil inventories drew down/fell -7.4 million barrels vs a - 5.2 million barrels, in the prior week.
Market Close Volume Traded And Advance Decline Ratio
Markets ended moderately lower in today's session. The Dow fell 265.66 points, Nasdaq lost 33.17 points, and the S&P fell 22.89 points. Total NYSE volume traded, a modest 4.54 billion shares. Declining shares outpaced Advancing shares by 1.61:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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