Here are the most important news, trends and analyses that investors need to start a trading day:
New York Stock Exchange Floor Trader, June 16, 2022.
U.S. stock futures Falling Wednesday, he noted the opening that would abandon most of the powerful rallies of the previous session ahead of the first day of economic testimony at Federal Reserve Chairman Jerome Powell at Capitol Hill. The Dow Jones Industrial Average rose 641 points (2.15%) on Tuesday, starting a week with shorter holidays. S & P 500 and Nasdaq rose 2.45% and 2.51%, respectively. Tuesday’s bounce occurred after the S & P 500’s worst week since March 2020, the month when the Covid pandemic was declared.
Federal Reserve Chairman Jerome Powell said at a press conference after the Federal Open Market Committee’s two-day meeting that the Federal Reserve raised target interest rates by three-quarters percentage points, causing a catastrophic surge in inflation. After stopping, he told reporters. (FOMC), Washington, USA, June 15, 2022.
Elizabeth Franz | Reuters
Powell is set to deliver The FRB’s biannual monetary policy report to the Senate Banking Commission on Wednesday and to the House Financial Services Commission on Thursday. The Federal Reserve Board makes prepared statements and faces questions from lawmakers. The surge in inflation and whether the central bank is doing enough to stop it will undoubtedly be the main focus of the hearing. In a preview last week, the Fed said the fight against inflation was “unconditional.” The Fed raised rates by 75 basis points at its June meeting and expects a similar rate hike at its next meeting in July.
Fuel prices for Chevron gas stations in San Francisco, June 9, 2022.
Bloomberg | Bloomberg | Getty Images
Oil prices fell 4% on Wednesday to about $ 105 per barrel.This will be announced by President Joe Biden in the afternoon pause Of a federal petrol tax of 18.4 cents per gallon. But the petrol tax holiday faces great opposition in Congress, including among many Democrats. Gasoline prices remain close to $ 5 per gallon nationwide for the peak of the summer driving season. Biden has taken many steps to lower prices, including a record release of barrels from US strategic stockpiles, production exemptions, and pressure on OPEC countries and US energy companies to increase production. I did.
Traders rotated to bonds on Wednesday, raising the price of 10-year government bonds and lowering the yield to about 3.2%. Bond prices and yields move in opposite directions. Yields soared to their 11-year highs last week after the FRB’s largest interest rate hike since 1994 stimulated demand for floating rate mortgages. Because these mortgages typically offer low fixed rates for 5, 7, or 10 years and then adjust to what the current interest rate in the future may be. , Is considered high risk.Applying for a mortgage to buy a home Up 8% last weekAlthough it was 10% lower than the same week last year. Refinancing demand fell 3% last week, down 77% from the same week a year ago.
Wednesday bitcoin Held for over $ 20,000, But it was trading lower. The world’s largest cryptocurrency on Tuesday returned to less than $ 18,000 after Saturday’s plunge, falling below the major $ 20,000 level for the first time since December 2020. At the lowest on Saturday, Bitcoin was about 74% below its all-time high. Over $ 68,000 in November, the last record month for Nasdaq. According to pricing site Coinmarketcap, the total market capitalization of cryptocurrencies is about $ 950 billion, down from the peak of $ 2.9 trillion in November 2021.