Here are the most important news, trends and analysis that investors need to start their trading day:
A screen shows the Fed rate announcement as a trader works inside a post on the floor of the New York Stock Exchange (NYSE) in New York City, United States, May 4, 2022. REUTERS / Brendan McDermid
Brendan McDermid | Reuters
US stock futures fell Thursday, one day after a strong Federal ReserveThe Wall Street-led relief rally pushed Wall Street higher for the third consecutive session. the Industrial average of the Dow Jones he was up 932 points, or 2.8%, as Fed chairman Jerome Powell removed a future interest rate hike of 75 basis points off the table. the S&P 500 gained nearly 3%. the Nasdaq added about 3.2%. Investors took the Fed on Wednesday Widely expected rate hike of 50 basis points abreast.
- the 10-Year Treasury Yield on Thursday popped higher, trading around 2.95%. The benchmark yield surpassed 3% on Monday, its highest level since late 2018. It traded above that value again on Wednesday morning before the Fed’s two-day May meeting concluded.
- OPEC + Thursday rubber molded another modest production increase for June after the EU outlined a Russian oil ban proposal. However, after the announcement, oil prices still increased by more than 1%.
Federal Reserve Chairman Jerome Powell speaks at a press conference following a Federal Open Market Committee meeting on May 04, 2022 in Washington, DC.
Win McNamee | Getty Images
After the 25bp rate hike in March, the first hike in more than three years, the Fed doubled Wednesday afternoon to counter what Powell later called in his post-meeting press conference. “too high” inflation.. The 50 basis point hike was the Fed’s largest rate hike since 2000.
- While ruling out a broader rate hike of 75 basis points down the road, Powell said hikes of 50 basis points were being considered in the next two meetings in June and July. Excursions also take place in September, November and December.
- Coupled with the higher rate move, central bankers indicated Wednesday that they will start reducing the holdings of assets on the Fed’s balance sheet by $ 9 trillion.
Pedestrians pass a Now Hiring sign in Arlington, Virginia on March 16, 2022.
Stefanie Reynolds | AFP | Getty Images
The sharp rally in the market on Wednesday suggested that investors, at least for now, were more convinced that the Fed could tame inflation without causing an economic downturn. The next couple of days bring key data on the other pillar of the Fed’s dual mandate to promote price stability and maximum employment.
- The government reported on Thursday unemployment claims for the first time it rose more than expected to 200,000. The government’s April employment report arrives on Friday and traders will see if Powell’s claim that “the job market has continued to strengthen and is extremely strained” holds up.
- Lab productivity dropped by 7.5% in the first quarter, more than expected and the largest decline since 1947, according to the latest government reading. Unit labor costs in non-agricultural enterprises increased 11.6% more than expected in the first quarter.
Elon Musk, during an event at SpaceX headquarters in Hawthorne, California, USA on Thursday, Oct.18 10, 2019.
Bloomberg / Getty
Elon Musk has blocked $ 7.14 billion in funding from a group of investors it includes Oracle co-founder Larry Ellison and Sequoia Capital to finance its $ 44 billion deal Twitter private, according to a filing Thursday. Saudi investor Prince Alwaleed bin Talal, which had initially opposed the acquisition, also agreed to invest its $ 1.89 billion stake in the deal rather than cash out, the filing showed. Musk, the CEO of both Tesla and SpaceX, will continue to hold talks with current Twitter shareholders, including the co-founder and former CEO Jack Dorseyto contribute shares to the proposed acquisition, showed the filing.
Signage at the eBay headquarters in San Jose, California, USA on Monday, August 9, 2021.
David Paul Morris | Bloomberg | Getty Images
Etsy shares sank more than 12% in the premarket on Thursday and Ebay Shares fell 7% the morning after each online market was released weaker than expected forward guidance. Inflation and the return to pre-Covid shopping habits were among the factors that weighed on Etsy’s and eBay’s prospects. Etsy matched revenue and beat revenue. Ebay beats on earnings and revenues.
- After two years of massive growth for e-commerce companies, investors are bracing for a slowdown, especially as the economy continues to reopen and consumers are returning to the shops. Even Amazonwhich expanded at a dizzying rate during Covid, was not immune from the e-commerce reset.