Stocks surged on Wednesday, gaining even more steam by the conclusion of the U.S. Federal Reserve's two-day meeting. The Fed hiked interest rates by 0.75 percentage points, as anticipated, but Fed Chair Jerome Powell also suggested the pace of these rate hikes could soon begin to slow. The Dow added 436 points for the day, while the S&P 500 also ended the session with a notable win. Meanwhile, sizeable post-earnings pops from Big Tech bellwethers Alphabet (GOOGL) and Microsoft (MSFT) helped lead the Nasdaq to a more than 4% win, marking its biggest one-day jump since April 2020.
Continue reading for more on today's market, including:
- This manufacturing name's technical setup looks perfect for options bears.
- A closer look at Meta Platforms stock ahead of earnings.
- Plus, what's weighing on AEO; CROX gears up for its quarterly confessional; and TEVA's billion-dollar settlement.
The Dow Jones Average (DJI - 32,197.59) gained 436.1 points, or 1.4% for the day. Microsoft (MSFT) led the gainers, adding 6.7%, while 3M (MMM) paced the laggards, falling 1.3%.
The S&P 500 Index (SPX - 4,023.61) jumped 102.6 points, or 2.6% for the day. Meanwhile, the Nasdaq Composite (IXIC -12,032.42) tacked on 469.9 points, or 4.1% for the session.
Lastly, the Cboe Market Volatility Index (VIX - 23.24) lost 1.5 point, or 5.9% for the day.
5 Things to Know Today
- Pending home sales dropped 20% year-over-year in June, per data from the National Association of Realtors -- shedding a wider-than-anticipated 8.6% from May. (CNBC)
- Strategists at Bank of America say that the Fed could start cutting interest rates in September 2023 as a means of fighting "a mild recession." (MarketWatch)
- Why this retail giant's selloff could extend into August.
- Can Crocs stock maintain its earnings win streak?
- The lowdown on Teva Pharmaceutical's $4.25 billion settlement.
EIA Update Sends Oil to Weekly Highs
Oil prices rose to their highest settlement since July 20 on Wednesday, following the Energy Information Administration's (EIA) report showing a weekly decline in U.S. crude and gasoline. The tightening of supplies has many speculating that black gold prices could top the $100 level once more. In response, September-dated crude added $2.28, or 2.4%, to settle at $97.26 per barrel.
Gold snapped a two-day losing streak to settle with a gain, after the Federal Reserve's widely expected decision to hike interest rates. August-dated gold added $1.40, or nearly 0.1%, to close at $1,719.10 per ounce an ounce.