Will the Stock Market Drop Again
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Stock Market Today: March 16, 2022
John E. Seibert Iii | 3/16/2022
The futures market started in the red yesterday, afterward a strong trading session during the solar day. The market indices began in the green and continued to march college throughout the twenty-four hours due to progress in talks between Ukraine and Russia, somewhen ending effectually their intra-daily highs. All told, the Dow Jones Industrial Average closed higher past 599 points, the Southward&P 500 was upwards 89 points, and the NASDAQ climbed 367 points. Market breadth was rather strong yesterday, as advancers outpaced decliners by a 2.2-to-1.0 ratio. Technology stocks were amidst the best performers on the day, reversing a portion of their losses over the by few weeks. Meanwhile, energy problems were among the day'southward weakest, injure by a decline in the related commodities.
The futures market continued to trend lower through the evening, giving upward a portion of the day'south gains. However, sentiment turned effectually, and the futures market place started to climb through the nighttime at a brisk pace. Futures were well into the greenish by early morning due to higher hopes of progress between Ukraine and Russia in their cease fire talks. Before long thereafter, Feb retail sales figures came out, showing an increase of 0.iii%, which was shut to consensus expectation. In add-on, last month'south figure was revised upwardly, to 4.9%, showing much stronger results in January. Meanwhile, import prices were up 1.iv%, month over month, though excluding the energy component cuts that number in half, to 0.7%. These indicators showed that the economic system is still growing, and resulted in piddling change in the futures market place. All told, we expect a potent start to the trading twenty-four hour period.
Subsequently in the day, the U.Southward. Federal Reserve volition release the results of its interest-rate policy decision. Most traders are pricing in a 25-basis-betoken hike, though a small contingent of traders is pricing in a 50-basis-point increase. Even with the changes priced in, market participants will however be looking to gather further information from Federal Reserve Chairman Powell, who will speak subsequently in the afternoon. Chairman Powell should provide insight into the Fed determination-making process, and what the virtually-term monetary policy outlook course may await similar. This will likely be a key determinant of how the market performs over the coming months, as the Fed implements a less accommodative monetary policy.
In commodity news, oil prices fell sharply yesterday, continuing a trend lower and reaching a acquit market subsequently peaking on March 7th. This reversal was caused by a resurgence of the coronavirus in China, which may well dampen need in Asia and the need for crude. Meanwhile, U.S. Treasury yields were a mixed bag, with brusque-term yields rising and long-term yields falling, which is unremarkably negative for fiscal companies' earnings, every bit they borrow short and lend long. The VIX Volatility Alphabetize, which measures the magnitude of price movements in the S&P 500, vicious yesterday, as demand for options protection eased a bit.
Looking forward, several economical reports will be released in the coming days. These include housing starts for February, the Philadelphia Fed manufacturing alphabetize, and initial jobless claims on Th. Additionally, existing home sales and leading indicators are slated for Friday. These factors should indicate how well the economy is doing. Meanwhile, the pace of earnings releases has slowed considerably, and very few companies will report quarterly results over the coming days. Overall, a tranquility earnings front will likely shift investors' attending to the economy, the war in Ukraine, and any developments concerning the coronavirus abroad. - John E. Seibert III
At the fourth dimension of this article's writing, the author did not accept positions in any of the companies mentioned.
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Previous Daily Updates:
Stock Market Today: March xv, 2022
3/xv/2022
This morning, the investment community'due south attention turned to the U.Due south. economy, with the release of another important reading on aggrandizement. Regardless of the new data, our sense is that with the geopolitical turmoil in Eastern Europe and the resultant volatility in the free energy market, the Federal Reserve will likely hike the short-term involvement charge per unit past 25 basis points, which seems to be already priced into the market place. The equity futures, which were moving higher heading into the release of the latest economical data, took another step up on the slight moderation in producer (wholesale) prices.
READ More thanStock Marketplace Today: March 14, 2022
3/14/2022
The U.S. stock market seems poised for a mixed opening this morning every bit traders continue to closely monitor the war betwixt Russian federation and Ukraine. On our shores, investors will plough their attention to the latest economic developments and the Federal Reserve's evolving budgetary policy.
READ More thanStock Market Today: March xi, 2022
3/11/2022
Today, U.Due south. stock market indexes appear set to erase all or most of their losses posted thus far this week, with futures pointing to a positive open.
READ MoreStock Marketplace Today: March 10, 2022
iii/10/2022
The major U.Due south. equity averages rallied notably yesterday after an extended stretch of daily setbacks. This morn, the attending of Wall Street, which has been focused generally on the turmoil in Eastern Europe and its impact on global crude oil supplies, turned to the U.S. economy. How will the market perform today?
READ MORESource: https://www.valueline.com/markets/stock-market-today/daily-update
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