Wednesday's Market Recap - Investor Cheered The FOMC Rate Hike With A Robust Rally.
- cashtonsaunders
- Mar 16, 2022
- 2 min read
What is The Premarket Telling Us?
Wednesday, March 16, 2022, 7:08 AM.
US stock futures were up big in the premarket. Dow futures up 358 points. Nasdaq futures up 238 points. and S&P futures up 52 points. Major Asian markets ended higher overnight. Markets are expecting a 25 basis points hike in interest rate from the Fed/FOMC later today.
On The Bond Desk:
The US 10 Year Bond Yield was up 0.20 basis points to 2.162%.
Currency Desk:
Eurodollar: 1.08
UK Pound: 1030
Crude Oil:
WTI crude oil futures at $96.06/barrel, down 0.39%.
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 1.64%, Shanghai up 3.48%, Hong Kong (Hang Seng) up 9.48%.
Major European markets closed higher. German (DAX) up 3.76%, France CAC 40 up 3.68%, London FTSE 100 up 1.62%.
Market And Sector Dynamics
Stocks opened solidly higher today. The Dow soared 365 points, Nasdaq gained 183 points, and S&P gained 45 points. WTI crude oil was also higher at $97.91/barrel, up 1.52%. US 10 Year Bond Yield was up 0.3 basis points, to 2.163%.
Stocks got off to a strong start and remained markedly elevated for most of the session, before turning briefly negative after the Fed's twenty-five basis points rate hike, as investors digested the news. The markets picked up steam a short while later, climbing to new highs, to close near the high of the day.
Nine of the eleven S&P sectors ended today with solid gains, led by Consumer Discretionary, Technology, Communication Services, Financials, Basic Materials, Industrials, Healthcare Real Estate, and Consumer Staples. Energy and Utilities ended the day with modest losses.
Factors Influencing Today's Market
Ukraine's President Zelensky addressed the US Congress this morning and was given a rousing welcome and standing ovation.
Starbucks CEO Kevin Johnson announced his sudden retirement. Howard Shultz will return as interim CEO.
Fed/FOMC hiked US interest rates by twenty-five basis points today. Stocks rallied even higher in the aftermath.
US 10 Year Bond closed at 2.192%, up 2.0%.
WTI crude oil ended the day at $96.14/barrel, down 0.31%.
This week's EIA Petroleum Status Report indicated US oil inventories increased by 4.3 million barrels vs a drawdown of 1.9 million barrels last week.
Market Close Volume Traded And Advance Decline Ratio
Stocks rocketed higher today after the Fed/FOMC hiked interest rate by twenty-five basis points today. The Dow jumped 518.76 points. Nasdaq gained 487.93 points, and S&P gained 95.41 points. Total NYSE volume traded was a moderate 6.28 billion shares. Advancing shares outpaced Declining shares by 3.82 billion shares.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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