Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market plunged Wednesday after the US Federal Reserve (Fed) hiked rates aggressively again, suggesting a higher peak or “terminal” rate.
This is a stock market correction. Investors should remain cautious, but look for major names.
CELH stock and Shockwave Medical on IBD leaderboard Watch list.Celsius Holdings, Enphase and SWAV Shares Listed IBD50ENPH stock is IBD Big Cap 20Celsius was Wednesday IBD stock todayShockwave was Monday.
The video embedded in this article describes Wednesday’s rollercoaster of market action and analyzes Celsius, ATI and GFS stocks.
Federal Reserve Board
As expected, the Fed raised the key rate by 75 basis points at its third consecutive meeting, raising the target range to 3%-3.25%.
Fed policymakers now expect the federal funds rate to end 2022 at 4.4%, up from 3.4% after the June meeting. With a further 75 basis points up at the November meeting and another 50 basis points in December, he’s in a year-end range of 4.25% to 4.5%.
The central bank has also hinted at gradual tightening in 2023, forecasting a 4.6% Fed Funds rate at the end of next year, compared to a forecast of 3.8% in June. It is also in line with what market watchers expected for terminal rates. Policymakers expect interest rates to fall to his 3.9% in 2024.
Federal Reserve Board member Jerome Powell reiterated that central banks will not give up on inflation. He said a “soft landing” would be difficult, but did not mention the possibility of a recession. Powell said “at some point” the Fed will slow its pace of rate hikes, but did not say when that would be. He added that Fed policy should remain “restrictive” for some time.
Fed Chairman Powell said the labor market remained “imbalanced” but added that commodity prices appeared to have peaked.
dow jones futures today
Dow Jones futures fell 0.4% against fair value. S&P 500 futures fell 0.6%. Nasdaq 100 futures fell 0.8%.
The 10-year Treasury yield rose four basis points to 3.55%.
stock market on wednesday
The stock market rose moderately until the Fed’s meeting decision, then took a roller coaster ride to close at session lows.
The Dow Jones Industrial Average fell 1.7% on Wednesday. stock market tradingThe S&P 500 Index also fell 1.7%. The Nasdaq Composite fell 1.8%. Small-cap Russell 2000 he fell 1.5%.
US oil prices fell 1.2% to $82.94 a barrel.
The 10-year Treasury yield fell 6 basis points to 3.51% after briefly hitting 3.62% on the Fed’s rate hike. Two-year Treasury yields rose above 4% to close at around 4.04%, well off the session high.
SPDR S&P Metals & Mining ETF (XME) fell 2.1%, while the US Global Jets ETF (jet) fell 4% on a bad day of travel play. SPDR S&P Homebuilders ETF (XHB) down 1.1%. Energy Select SPDR ETF (XLE) retreated 1.5% and the Financial Select SPDR ETF (XLF) 2.1%. Healthcare Select Sector SPDR Fund (XLV) decreased by 1.7%.
Celsius shares fell 3.9% to 98.23 on Wednesday. Stocks have pulled back to find support at the 10-week moving average after he rose 209% from early May to late August. In another few weeks, the CELH stock could have a new base of 118.29. point of purchaseInvestors can use 108.47 as an early entry for the energy drink maker.
of relative lines of force CELH’s stock price is at a record high.
SWAV shares fell 1.85% to 284.69 on Wednesday, down from 300.96 during the day. Shockwave stocks continue to find support near the 21st line.
ATI shares fell over 2% to 29.67, trading near the 21st line after pulling back from a seven-year high of 33.31. Stocks of specialty alloy makers have retreated to the top of their previous base and are just above the 10-week line. A 10-week line bounce provides early entry and a good base could be a week away.
ATI’s stock has pulled back, but the RS line is high.
GlobalFoundries share price fell 0.9% to 56.29. This is just above his 50-day line and brand new his 200-day line, while GFS stock is just below his 10-week line. 2021 Chip Foundry IPOs Are Very Deep double bottom base Comes with a handle and offers 66.06 points of purchase. At the end of the week, the GFS stock handle will be the same 66.06 entries long enough to become its own base.
Enphase shares fell 15 cents to 304.56, with continued support at the 21-day moving average. ENPH inventory is still growing from the 50-day line, but is trending downward. The Enphase stock’s RS line has been hitting new highs for several weeks.
stock market analysis
As usual, the stock market plunged following the Fed’s rate hike decision, new rate forecasts, and Chairman Powell’s comments. The leading index finally had an ugly, downside reversal session on the outside.
Markets weren’t caught off guard on Wednesday, but the Fed’s overall tone may have been a little more hawkish than expected. Ultimately, however, the Federal Reserve is aggressively raising interest rates to reverse inflation, even as the risk of a recession rises.
Markets often show the Fed’s second day reaction. But even if stocks rebounded on Thursday, it wouldn’t make sense.
All the major indices have broken below Wednesday’s intraday lows and are losing sight of their 50-day moving averages. June lows are not far off.
what to do now
In the end, it’s not the news that matters, but the reaction of the market to the news. Also, the stock market reacted poorly to the Federal Reserve’s decision on Wednesday.
Will the market rebound in the short term or will it have a decent rally over the next few weeks? Of course. But investors will want to see more evidence.
Major stocks such as Celsius, Shockwave and Enphase may flash buy signals early in the market’s attempt to rally. But investors need to balance the urge to jump right into hot stocks with the confirmation that a broader uptrend is underway. Even relative leaders could collapse if the market heads towards his June lows or beyond.
Opportunities abound if a real stock market rally takes hold. The key is to be prepared.
Work on those watchlists. Look for relatively strong stocks and stocks holding or recovering from key moving averages.
read big picture Every day to stay in sync with market direction and major stocks and sectors.
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