Finance

Futures rise after Powell sell-off; solar market on a shooting star


Dow Jones futures, S&P 500 futures and Nasdaq futures were higher after the bell as the market sold off after Fed Chairman Powell said the Fed was unlikely to cut interest rates in March.




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Stocks started higher on Wednesday, with tech stocks sharply lower after earnings reports Microsoft (Microsoft Corporation), Google parent company letter (Google) and Advanced Micro Devices (AMD). However, the sharp decline expanded after comments by Federal Reserve Chairman Powell.

While the major stock indexes still look healthy, investors should be cautious about new buying in the short term and consider taking profits.

benefit

Qualcomm (Qualcomm), next tracker (NXT), former NXT parent Flexible (Flexible) and Alignment technology (ALGN) reported Wednesday night.Qualcomm shares edged lower overnight strong profits and online guidance. Nextracker shares surge, issuing a buying opportunity. ALGN stock surged above its 200-day moving average. FLEX stock was slightly higher.

royal caribbean (RCL) pre-opening report. RCL stock has an emerging fundamental and is looking for critical support.

amazon.com (Amazon), apple (AAPL) and meta platform (Mehta) is coming up Thursday evening. All three Big Seven stocks were down slightly on Wednesday.

Yuan has been opened IBD rankings.MSFT stock is now online IBD Long-Term Leader.Meta stocks, Google, Microsoft and Novo Nordisk are all in IBD50Google stock is located at IBD Large Cap 20.

Dow Jones Futures Today

Dow futures were up 0.1% from fair value, S&P 500 futures were up 0.2% and Nasdaq 100 futures were up 0.3%.

The 10-year Treasury yield extended losses from the close at 3 p.m. Eastern time, falling to 3.94%.

Remember what you did that night Dow Jones Futures and other places that won’t necessarily translate into actual transactions on the next regular basis stock market Meeting.

Fed Chairman Powell rejects March rate cut

As expected, the Fed took no action at its two-day meeting and formally shifted monetary policy away from a tightening bias, but policymakers said they were not yet ready to cut interest rates.

“The Committee does not anticipate lowering the target range until it becomes more confident that inflation will continue to move toward 2 percent,” the Fed statement said.

Fed Chairman Powell’s stance is clear, he said, “I think it’s unlikely that policymakers” will feel confident enough at the March meeting. He did say that current policies are restrictive and believed it would make sense to relax them at some point this year.

The Fed meeting announcement and Powell’s comments come after Fed and ECB officials had been pushing back for weeks against a consensus for rapid and deep interest rate hikes in 2024.

The probability that the Fed will cut interest rates in March fell to 36% from 40.4% on Tuesday. Ahead of the Fed’s announcement and Powell’s comments on weak economic data, markets put a 60% chance of a rate cut in March. There is now a 100% chance of cuts before May 1st.


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Stock market rebounds

Stocks rebounded after the Fed announcement, especially after Powell’s comments, extending losses and closing near session lows

The Dow Jones Industrial Average fell 0.8% on Wednesday stock market tradingIt reversed from a record high to lower during the session. The S&P 500 fell 1.6%.The Nasdaq fell 2.2%, just below its 21-day moving average

Microsoft fell 2.7% on Wednesday despite strong earnings and guidance. Google shares plummeted 7.5% due to weak advertising revenue growth. AMD shares fell 2.5%, but remained well off their lows despite in-line earnings and a soft revenue forecast. Reports from three AI tech giants are causing harm to other technologies.

Meta shares fell 2.5% and Amazon fell 2.4%. AAPL shares fell 2%, posting their sixth consecutive loss.

Otherwise, the damage was modest — until Powell overruled his decision to cut rates in March.

The Russell 2000 index fell 2.45%, falling below the 21-day line and approaching the 50-day line. Regional bank stocks constituted a major drag on the small-cap index.

Invesco S&P 500 Equal Weight ETF (RSP), which was close to breakeven for much of the trading day, down 1.3%. RSP closed slightly higher than the 21st. First Trust Nasdaq 100 Equal Weight Index ETF (QQ) fell 1.4%, lagging the Nasdaq 100’s 1.9% loss.

The Nasdaq extended from its 50-day line a week ago, but was just 2.6% above that key level on Wednesday

Keep in mind that markets often react with reversals on the second day of a Fed meeting. Additionally, Friday’s jobs report will put Fed Chairman Powell’s comments into new context.

The 10-year Treasury yield fell 9 basis points to 3.965%, closing below 4% for the first time since January 12.

Before the opening bell, weaker-than-expected ADP employment report and employment cost index caused yields to fall several basis points, with U.S. bond yields hitting 3.94%. New York Community Bank (New York City Commercial BankThe company’s shares tumbled as loan loss provisions surged, leading to an unexpected fourth-quarter loss as it faced tighter capital requirements.

U.S. crude oil prices fell 2.5% to $75.85 a barrel.

ETF

Among growth ETFs, iShares Expanded Tech-Software Sector ETF (IGV) fell 2.2%, with MSFT stock becoming a key holding. VanEck Vectors Semiconductor ETF (SMH) fell 1.4%. QCOM stock, like AMD, is a stock held by SMH.

The ARK Innovation ETF reflects stocks with more speculative stories (alke) fell 3.1%, ARK Genomics (arkg) fell 3.3%.

SPDR S&P Metals & Mining ETF (XME) fell 1.6%, while Global Jets (Jeters) fell 0.8%. SPDR S&P Homebuilders ETF (Xin Hong) and Energy Select SPDR ETF (XLE) each fell 1.9%. Healthcare Select Sector SPDR Fund (XLV) fell slightly by 0.1%.

Industrial Select Sector SPDR Fund (XLI) gave up 1.2%.

Financial Select SPDR ETF (XLF) fell 1.1%. SPDR S&P Regional Banking ETF (Korea Real Estate Association) fell 5.85%, first as NYCB’s stock price plummeted, and then intensified the losses of Federal Reserve Chairman Powell.


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what to do now

Stock market gains have eased a bit on Fed Chairman Powell, but the major indexes have yet to show significant damage, at least so far. But the stock that issued a buy signal on Monday may now be in trouble.

Thursday’s earnings report will remain strong, with Friday’s jobs report looming. These could provide catalysts for a market rebound or an intensification of the sell-off.

Investors should probably wait until the dust settles on Friday morning before considering new purchases. They may want to exit recent entries and consider taking at least partial profits in a variety of stocks, especially those with earnings on maturity.

That said, current actions may lead to new settings in the coming days and weeks. So stay on top of your watch list.But also be prepared to exit the plan

read overall view Stay up to date with market direction and leading stocks and industries every day.

Please follow Ed Carson’s thread: @edcarson1971 andX/Twitter @IBD_ECarson Get stock market updates and more.

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