Wednesday's Market Recap - Stocks Soar After FOMC Hikes Interest Rate By Fifty Basis Points.
- cashtonsaunders
- May 4, 2022
- 2 min read
What is The Premarket Telling Us?
Wednesday, May 4, 2022, 7:00 AM.
Stock futures were modestly higher at the seven o clock hour, an indication that investors may be poised to extend yesterday's rally. Dow futures were up 104 points, Nasdaq futures up 34 points, and S&P futures up 14 points. Most Asian markets are closed. Investors will be laser-focused on the Federal Reserve, as the FOMC is expected to hike interest rates by fifty basis points later today.
On The Bond Desk:
The US 10 Year Bond Yield at 2.960%, down 0.0360%.
Currency Desk:
Eurodollar: 1.05
UK Pound: 1.25
Crude Oil:
WTI crude oil futures, at $106.18/barrel, up 3.68%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) closed, Shanghai closed, Hong Kong (Hang Seng) down 1.14%.
Major European markets closed in the red. German (DAX) down 0.49%, France CAC 40 down 1.24 %, London FTSE 100 down 0.90%.
Market And Sector Dynamics
US stocks opened flat to modestly higher to begin the trading session, ahead of the FOMC's fifty basis points rate hike, expected this afternoon.
The Dow gained 5 points, Nasdaq down 21 points, and the S&P up 1 point. WTI crude oil was up $4.65 to $107.06/barrel, a gain of 4.54%, and the US 10 Year Bond Yield ticked up 1.9 basis points, to 2.9790%.
Markets clung close to the flat line for most of the session, in anticpation of the announced fifty basis points rate hike by the FOMC, and early into the Fed Chair Jerome Powell's press conference. The markets then took off when the Chairman in response to a question about aabout a the potential for a 0.75 basis point hike. The Chairman responded the the FOMC was not considering a 0.75 basis point hike. Investor seemed to like that clarity, and went on a buying spree.
All of the eleven S&P sectors closed in positive territory in the session, led by Energy, Communication Services, Technology, Basic Materials, Financials, Industrials, Consumer Discretionary, Utilities, Healthcare, Consumer Staples, and Healthcare.
Factors Influencing Today's Market
The FOMC announced a fifty basis points interest rate hike today, sending markets soaring higher.
US 10 Year Bond Yield ended today at 2.946%, down 0.97%.
WTI crude oil price ended the day at $107.69/barrel, up 5.16%.
This week's EIA Petroleum Status Report grew/build 1.3 million barrels, vs the 0.7 million barrels in the prior week.
April's ADP Private Sector Payroll showed 247,000 new private jobs were created vs 398,000 expected.
Market Close Volume Traded And Advance Decline Ratio
Markets rocketed higher this afternoon after the FOMC announced a fifty basis point interest rate hike. The Dow soared 932.27, Nasdaq jumped 401.10 points, and the S&P rose 124.69 points. Total NYSE volume traded was a 5.18 billion shares. Advancing shares outpaced Declining shares by 4.42 billion shares.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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