Wednesday's Market Tear Sheet - Morning Rally Fades Into A Massive Post Rate Hike Selloff.
- cashtonsaunders
- Sep 21, 2022
- 2 min read
What is The Premarket Telling Us?
Wednesday, September 21, 2022, 6:44 AM.
futures are mostly flat at this hour, with Dow futures up 69 points, Nasdaq futures flat, and S&P futures up 7 points. Today the Fed/FOMC is expected to hike interest rates by another three-quarter of a point. Asian markets ended lower overnight.
On The Bond Desk:
The US 10-Year Bond Yield has ticked up to 3.571%, a gain of0.081%.
Currency Desk:
Eurodollar: 0.99
UK Pound: 1.13
Crude Oil:
WTI crude oil futures were at $85.93/barrel, up 2.37%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets closed lower overnight. Japan (Nikkei 225) was down 1.36%, Shanghai down 0.17%, Hong Kong (Hang Seng) down 1.79%.
Major European markets ended with gains today. German (DAX) up 0.76%, France CAC 40 up 0.87%, London FTSE 100 up 0.63%.
Market And Sector Dynamics
US markets opened today's session comfortably higher. The Dow rose 154 points, Nasdaq gained 40 points and the S&P up 20 points. WTI crude oil opened at $84.12/barrel, down 0.39%, and the US 10 Year Bond started the day off at 3.559%, down 0.03%.
Markets traded in a narrow range above the flat line for most of today's session ahead of the FedFOMC rate hike decision, shortly after 2:00 PM.
Markets fluctuated in and out of positive territory after the Fed/FOMC announced its 75 basis point rate hike this afternoon. Stocks went down immediately following the announcement, then rallied back to positive territory during the Fed Chairman's press conference, then sold off later.
All eleven S&P sectors ended with losses in the session, led by Consumer Discretionary, Communication Services, Basic Materials, Financials, Healthcare, Technology, Real Estate, Energy, Utilities, Industrials, and Consumer Staples.
Factors Influencing Today's Market
The Fed/FOMC announced another 75 basis point rate today.
US 10 Year Bond Yield closed lower today at 3.534%, down 0.98%
WTI crude oil price closed lower in today's session, at $83.03/barrel, down 1.68%.
This week's EIA Petroleum Status Report showed US crude oil inventory increased/grew 1.1 million barrels vs 2.4 mill. last week.
Market Close Volume Traded And Advance Decline Ratio
US markets tanked today, following the Fed/FOMC hike interest rates by another 75 basis points. At the close of trading, the Dow tumbled 522.45 points, the Nasdaq plunged 204.86 points, and the S&P lost 66 points. Total NYSE volume traded was a light 4.08 billion shares. Declining shares outpaced Advancing shares by 2.52:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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