Use coupon ‘RECAP‘ on checkout for 25% off first payment Pro membership
Sign up and receive the Recap in your inbox FREE everyday…
- &P 500 (SPY): +0.35%
- Nasdaq (QQQ): +0.63%
- Dow Jones (DIA): +0.23%
- Russell 2000 (IWM): -0.74%
- Volatility Index (VIX): -3.23%
- Apple (AAPL): +0.99%
- Tesla (TSLA): -0.60%
- NVIDIA (NVDA): +1.11%
- Zoom (ZM): -2.79%
- GameStop (GME): -2.36%
- AMC Entertainment (AMC): -1.64%
- Symbotic (SYM): +14.00%
- Resolute Forest Product (RFP): +62.93%
Stocks pushed higher Wednesday after a very choppy session following the release of the Federal Reserve’s June meeting minutes, which highlighted the risk presented by elevated inflation and a commitment by the Fed to remain aggressive in its fight against higher prices. The price of crude oil remained under $100 per barrel amid fears that a recession would weigh on demand while the benchmark 10-year treasury yield fell to 2.82%, the lowest level in six weeks.
Prospects of a deep economic downturn have stoked ongoing volatility in markets, with investors weighing whether inflation and a more aggressive Federal Reserve tightening cycle will curb growth to the point of tipping the economy into a recession. And some key economic data, from consumer sentiment to spending and purchasing managers’ indices, have each softened or turned lower in recent prints.
After trading choppily all morning, stocks pushed higher in the afternoon after the release of the Fed’s meeting minutes, which reaffirmed the Fed’s commitment to aggressively fighting inflation. The minutes said, “Participants concurred that the economic outlook warranted moving to a restrictive stance of policy. and they recognized the possibility that an even more restrictive stance could be appropriate if elevated inflation pressures were to persist.”
Moreover, the Fed all but confirmed another 75 basis point hike to the interest rate in the next FOMC meeting. The minutes said, “After the release of the higher-than-expected inflation data, policy-sensitive rates pointed instead to a considerable probability of 75 basis point moves at both the June and July meetings.”
Early on Wednesday, new data painted a mixed picture on the current state of the economy. Job openings came in greater-than-expected at nearly 11.3 million for May, pointing to persistent tightness in the labor market and ongoing labor scarcities relative to vacancies. Separately, the Institute for Supply Management’s closely watched services index dipped to the lowest level since May 2020 as of June.
Jonathan Miller, senior analyst at Barclays, said “A broad-based slowdown in overall consumer spending has already been underway this year, led by deterioration in the goods category, with services providing little in the way of offset. may indicate that a more precautionary mindset might be setting in, which would make households more inclined to hoard excess savings accumulated during the pandemic.”
“”The way to get started is to quit talking and begin doing.” –Walt Disney