Equities hit their session highs following Fed Chair Powell's hawkish comments
Stocks were able to break out of their rut today, rising after the Federal Reserve's somewhat surprising decision to hike interest rates by 75 basis points, the sharpest rise since 1994. Fed Chair Jerome Powell noted in his press conference that a similar hike could be coming in July, and reiterated the central bank's aggressive commitment to curbing inflation.
The Dow added 303 points for its first win in six sessions. Both the S&P 500 and Nasdaq also snapped five-day losing streaks, with Big Tech staging a bounce as Treasury yields cooled. Meanwhile, the Cboe Volatility Index (VIX) had its worst day since May 3.
Continue reading for more on today's market, including:
- What's next for stocks after this rare losing streak.
- Time to buy this healthcare stock on the dip.
- Plus, Hertz's big day; HOOD downgraded; and SNOW bounces off record lows.
The Dow Jones Average (DJI - 30,668.53) added 303.7 points, or 1%, for the day. Boeing (BA) led the gainers, adding 9.5%. Chevron (CVX), meanwhile, paced the laggards with a 2% drop.
The S&P 500 Index (SPX - 3,789.99) rose 54.5 points, or 1.5% for the day. Meanwhile, the Nasdaq Composite (IXIC - 11,099.15 ) gained 270.8 points, or 2.5% for the session.
Lastly, the Cboe Market Volatility Index (VIX - 29.62) shed 3.1 points, or 9.4% for the day.
5 Things to Know Today
- Spotify Technology (SPOT) CEO Daniel Ek said in an email to employees the company is slowing hiring by 25%, as economic uncertainty hits the tech sector. (CNBC)
- U.S. President Joe Biden called on U.S. oil refiners to increase gasoline supplies, adding higher-than-usual refinery profit margins are unacceptable. (MarketWatch)
- A $2 billion buyback program gave Hertz stock a boost earlier.
- Robinhood stock hit a record low after this analyst downgrade.
- Today's bull note helped Snowflake stock off its recent bottom.
There were no notable earnings reports today.
Rate Hike, Rising Supplies Weigh on Oil
Oil prices settled lower on Wednesday, after the Energy Information Administration (EIA) said U.S. crude inventories rose for a second consecutive week. Also weighing on black gold was the Fed's aggressive interest rate hike. July-dated crude shed $3.62, or 3%, to settle at $115.31 per barrel.
Meanwhile, gold prices settled higher, despite struggling for direction most of the day. The Fed decision is already weighing on the precious metal in electronic trading. Still, August-dated added $6.10, or 0.3%, to close at $1,819.60 an ounce.