futures are trending in negative territory on Wednesday morning, as markets await the Federal Reserve’s vital interest rate decision. The Nasdaq 100 ( NDX), S&P 500 ( SPX), and the Dow Jones Industrial Average ( DJIA) all dipped by 0.16%, 0.13%, and 0.11%, respectively, at 9:45 a.m. Meanwhile, traders braced for a hike in interest rates ahead of the Fed’s rate decision today. Demand for mortgages and refinancing both registered an uptick which resulted in the pushing up of the market composite index - a measure of mortgage application volume by 3% to 221 for the week ending March 17 from the previous week. The mortgage applications data published by the Mortgage Bankers Association (MBA) indicated that demand for mortgages picked up by 3% in the latest week as mortgage rates fell for the second week in a row. On the other hand, the S&P 500 ( SPX) is flat. EST, the Dow Jones Industrial Average ( DJIA) is down 0.1%, while the Nasdaq 100 ( NDX) is up 0.3%. Currently, the market is pricing an 89.3% chance of a rate hike, which would raise the target rate to a range of 4.75% to 5%.Īs of 11:22 a.m. Stock indices are mixed so far in today’s trading session as investors await the Federal Reserve’s interest rate decision. EST, the Dow Jones Industrial Average ( DJIA), the Nasdaq 100 ( NDX), and the S&P 500 ( SPX) are up 0.1%, 0.9%, and 0.4%, respectively. The market got exactly what it expected, as the target rate increased to a range of 4.75% to 5%.Īs of 2:05 p.m. Stock indices are rallying after the Federal Reserve’s interest rate decision. Meanwhile, the Nasdaq 100 ( NDX) is up 0.4%. EST, the Dow Jones Industrial Average ( DJIA) and the S&P 500 ( SPX) are down 0.4% and 0.1%, respectively. Stocks cut their earlier gains as some indices turn negative following the Federal Reserve’s rate hike. For reference, investors had assigned a 47.3% chance yesterday. In addition, the market is now also assigning a 28.6% probability to a range of 5% to 5.25%. In fact, the market’s expectations for a rate in the range of 4.5% to 4.75% increased to 19% compared to yesterday’s expectations of 10.9%. This brings the spread between them to -50 basis points.Ĭompared to yesterday, the market is pricing in a higher chance of a lower Fed Funds rate for June 2023. Similarly, the Two-Year Treasury yield also decreased, as it hovers around 3.94%. 10-Year Treasury yield decreased to 3.44%. Nevertheless, Powell also stated that “We have the tools to protect depositors when there’s a serious threat to the economy.”įurthermore, the U.S. This has made them very vulnerable to withdrawals from depositors. This comes despite the issues witnessed in the banking sector recently, which is nursing massive losses on fixed-income assets thanks to rising rates. The Dow Jones Industrial Average ( DJIA), the S&P 500 ( SPX), and the Nasdaq 100 ( NDX) fell 1.63%, 1.65%, and 1.37%, respectively, after the Federal Reserve raised interest rates, with Jerome Powell stating, “If we need to raise rates higher, we will.” Stock indices finished today’s trading session in the red.
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