Wednesday's Market Tear Sheet - FOMC Hikes Interest Rates 75 Basis Points. Markets Soar.
- cashtonsaunders
- Jul 26, 2022
- 2 min read
What is The Premarket Telling Us?
US stock futures were markedly higher in the premarket suggesting markets would open with a strong rally. Dow futures were up 122 points, Nasdaq futures up 170 points, and S&P futures up 33 points.
On The Bond Desk:
The US 10-Year Bond Yield at 2.787%, down 0.33%.
Currency Desk:
Eurodollar: 1.01
UK Pound: 1.20
Crude Oil:
WTI crude oil futures at $95.34/barrel, up 0.38%.
On the Earnings Calendar:
Alphabet (GOOGL), Microsoft, and Chipotle reported decent earnings at the close of trading yesterday.
META and Qualcomm report earnings after the close of trading today.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed Japan (Nikkei 225) up 0.22%, Shanghai down 0.05%, Hong Kong (Hang Seng) down 1.13%.
Major European markets closed higher. German (DAX) gained 0.53%, France CAC 40 up 0.75%, London FTSE 100 up 0.57%.
Market And Sector Dynamics
Fifteen minutes into the trading session US markets were solidly higher. The Dow was up 143 points, Nasdaq up 220 points, and the S&P up 41 points. WTI crude oil opened at $95.60/barre, and the US 10 Year Bond hung out at 2.801%, down 0.002%.
Markets held steadily higher for most of the session, ahead of the FOMC's interest rate decision, which was released at 2:00 PM. The FOMC as expected hiked interest rates by 75 basis points, a decision which was cheered by investors. The markets rocketed higher after the decision and during Fed Chair Powell's press conference. At the high of the day, the Dow was up 560 points half an hour before the closing bell.
Market tone was very positive and the rally was broad-based with all eleven S&P sectors ending the session with nice gains, led by Communication Services, Technology, Consumer Discretionary, Energy, Industrials, Financials, Basic Materials, Consumer Staples, Real Estate, and Utilities.
Factors Influencing Today's Market
As was expected, the Fed/FOMC hiked US interest rates by another 75 basis points which sent markets surging higher.
Asian markets ended mixed in their session while European markets ended higher.
US 10-Year Bond ended today at 2.785%, down 0.65%.
WTI crude oil ended trading today at $98.19/barrel, up 3.38%.
This week's EIA Petroleum Status Report showed US crude oil inventories fell -4.5 million barrels vs -0.4 million barrels last wee
Market Close Volume Traded And Advance Decline Ratio
US markets ended Wednesday's session meaningfully higher. The Dow soared 436.05 points, Nasdaq surged 469.85 points, and the S&P gained 102.56 points. Total NYSE volume trades was a modest 4.56 billion shares. Advancing shares outpaced Declining shares by nearly 5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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