Wednesday's Market Recap - Stocks Rallied Sharply After Today's FOMC Decision.
- cashtonsaunders
- Dec 16, 2021
- 2 min read
What is The Premarket Telling Us?
December 15, 2021, 7:15 AM.
Mostly flat was the status of US stock futures at this hour. Dow futures down 4 points, Nasdaq down 23.25 points, and the S&P down 0.75 point.
Asian markets ended their session mixed today.
On The Bond Desk:
The US 10 Year Bond Yield at 1.438%, down 0.014%.
Currency Desk:
Eurodollar: 1.12
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $69.86/barrel, down 1.23%.
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 0.10%, Shanghai down 0.38%, Hong Kong (Hang Seng) down 0.91%.
Major European markets ended mixed. German (DAX) up 0.15%, France CAC 40 up 0.47%, London FTSE 100 fell 0.66%.
Market And Sector Dynamics
Stock markets were mostly flat at the open. The Dow was up 2 points, Nasdaq down 6 points, and S&P up 4 points. WTI crude oil slipped 0.76% to $70.19/barrel, and the US 10 Year Bond was up 3.8 basis points to 1.467%. Stocks hung out in negative territory for most of the morning and afternoon session, until shortly after 2:00 PM, when the FOMC released its highly anticipated December interest rate policy decision.
While no change in rate was expected immediately, the FOMC did quicken the pace of its taper, as was announced earlier, and projected as many as three interest rate hikes next year. Investors seemed very happy with the Fed's decision, sending stocks higher. All three major indexes soared after the announcement of the decision and Chairman Powell's press conference.
After a mostly negative start, today's trading sharply positive, with ten of the eleven S&P sectors ending with gains, led by Technology, Utilities, Healthcare, Real Estate, Consumer Discretionary, Communication Services, Consumer Staples, Industrials, Financials, and Basic Materials. Energy finished higher.
Factors Influencing Today's Market
The Federal Reserve/FOMC at its policy meeting today projects three interest rate hikes next year. Markets rallied on that news.
Asian markets ended mostly lower today, while European markets ended mixed.
US 10 Year Bond Yield closed today at 1.463%, up 1.54%.
WTI crude oil ended today at $71.62/barrel, up 1.26%.
This week's EIA Petroleum Status Report showed US crude oil inventories fell 4.6 million barrels vs 0.2 million barrels last week.
Market Close Volume Traded And Advance Decline Ratio
Stocks turned around intraday sending the major indexes sharply higher at the close. The Dow soared 383.25 points, Nasdaq jumped 327.94 points, and S&P gained 75.76 points. Total NYSE volume traded, a modest 4.82 billion shares. Advancing shares outpaced Declining shares by 1.91:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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