Wall Street Today | Three Records Walk Into Powell. They Say, "I'm Fed Up!"
RECAP
Markets climbed Wednesday after the FOMC rate decision, which went as planned: no changes were announced for the Federal Funds Target Rate of 5.25-5.5%.
With preliminary closing figures, all three major indexes were on track to close at all-time highs. The $S&P 500 Index (.SPX.US)$ climbed 0.89% to 5,224, an all-time intraday and closing high. The $Dow Jones Industrial Average (.DJI.US)$ climbed 1.03% to 39,511, an all-time closing high, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 1.25% to 16,369, on track to a closing high.
MACRO
The news of the day was the Federal Open Market Committee (FOMC) that left rates unchanged on Wednesday. The FOMC also released its quarterly dot plot forecast, showing where individual committee members' assessment rates should land in the coming years.
"The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance," the statement said. "The economic outlook is uncertain, and the Committee remains highly attentive to inflation risks. In support of its goals, the Committee maintained the target range for the federal funds rate at 5-1/4 to 5-1/2 percent."
According to the dot plot projection, policymakers see the median Federal Funds at 4.6 at year's end, compared to the current target of 5.25-5.5.
SECTORS
The biggest gaining sector tracked by moomoo this morning is Donald Trump Stocks, with names like $Digital World Acquisition Corp up 18% and $Phunware climbing 4%. Approaching the presidential election this year, Trump stocks have shown volatility when the former president has made the news or won out in the Republican primaries.
The "Aluminum" and "Silver" sectors also rose, followed by "WallStreetBets," which showed dramatic climbs from $CleanSpark (CLSK.US)$, 19%, and $MARA Holdings (MARA.US)$, +13%, both Bitcoin stocks.
Crude oil futures are lower this morning after rising to a nearly five-month high in the previous two sessions on concerns about tightening supplies. $Crude Oil Futures(JAN5) (CLmain.US)$ climbed to a $81 for <ay4 delivery
"Crude futures are trading under corrective pressure today as the market reacts to an overbought condition, a stronger U.S. dollar, and the API reporting a drawdown of crude storage of 1.5 million barrels," Dennis Kissler of BOK Financial says in a note.
"Most traders feel the latest price rally has happened a bit too fast, and a corrective phase is needed." WTI for April delivery, which expires today, is down 1.6% at $82.11 a barrel, and May Brent is off 1.4% at $86.16 a barrel.
COMPANIES
Intel Gets $8.5 Billion Award For U.S. Chip-Plant Construction
The U.S. government is granting $Intel (INTC.US)$ up to $8.5 billion to help fund new chip plants in four states, the largest award yet to revive American chip-making overseen by the Biden administration.
Chewy Adds 7%+ on Q4 Earnings and Revenue Beats
$Chewy (CHWY.US)$ gained some 7% Wednesday in after-hours trading after the online pet retailer beat analysts' consensus estimates for Q4 revenues and earnings per share.
Micron Technology Soars Nearly 10% on Fiscal Q2 Earnings and Sales Beats
$Micron Technology (MU.US)$ rose nearly 10% in after-hours trading Wednesday after the tech giant reported quarterly earnings of $0.42 per share, which beat the analyst consensus estimate of $(0.25).
Chipotle Stock Flirts With Record on News of 50-to-1 Split
Shares of $Chipotle Mexican Grill (CMG.US)$ turned more popular than free guacamole after the burrito chain announced a 50-for-1 stock split.
Source: Bloomberg, Dow Jones, CNBC, Reuters
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See thislinkfor more information.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See thislinkfor more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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