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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 33921.42 +792.63 (2.39%)
Nasdaq 12886.32 +322.57 (2.57%)
SP 500 4277.21 +101.73 (2.44%)
10-yr Note -1/32 2.988
NYSE Adv 2455 Dec 686 Vol 620.2 mln
Nasdaq Adv 2965 Dec 1407 Vol 4.3 bln

Industry Watch
Strong: Energy, Communication Services, Information Technology
Weak: Real Estate

Moving the Market

-- Fed Chair Powell says Fed is not actively considering hiking rates by 75 basis points in coming meetings; 50-bps-increases more likely

-- FOMC hikes rates by 50 basis points and approves plan to reduce balance sheet, as expected

-- Treasury yields drop in wake of Powell comments

Crude futures flirt with $108 per barrel
04-May-22 15:30 ET
Dow +792.63 at 33921.42, Nasdaq +322.57 at 12886.32, S&P +101.73 at 4277.21

[BRIEFING.COM] The S&P 500 is now up 2.4% in a relief rally after Fed Chair Powell said a 75-basis-point rate hike is not on the table right now.

One last look at the S&P 500 sectors shows ten sectors up between 1.9% (health care) and 3.4% (energy). The real estate sector is getting left behind with a modest 0.5% gain.

WTI crude futures settled higher by $5.29 (+5.2%) to $107.97/barrel.
Powell catalyzes relief rally after dismissing 75-bps hike
04-May-22 15:00 ET
Dow +574.50 at 33703.29, Nasdaq +202.69 at 12766.44, S&P +71.47 at 4246.95

[BRIEFING.COM] The S&P 500 is up 1.8% after Fed Chair Powell said the central bank was not considering a 75-basis-point hike in future meetings and is instead targeting 50-basis-point hikes.

That has catalyzed a huge sign of relief in the market considering the fed funds futures market was assigning a 95% probability for a 75-bps hike next month. That probability has now decreased to 70.9%, which is to say that there is some skepticism amid the persistent inflation pressures.

The 2-yr yield, which is more sensitive to changes in the fed funds rate, has dropped 13 basis points to 2.63%.
Fed lifts rates 50 basis points, as expected; to reduce Treasury holdings in June
04-May-22 14:25 ET
Dow +125.03 at 33253.82, Nasdaq -40.40 at 12523.35, S&P +4.40 at 4179.88

[BRIEFING.COM] The broader market briefly lifted higher, but faded a bit after the Federal Reserve approved a 50 basis point rate hike to the federal funds rate to a range of 0.75% to 1.00%, as widely expected.

Additionally, the Committee decided to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities on June 1. For Treasury securities, the cap will initially be set at $30 billion per month and after three months will increase to $60 billion per month.

The Fed also added that the invasion of Ukraine by Russia was causing tremendous human and economic hardship. The implications of this for the U.S. economy are highly uncertain. In addition, the Fed said COVID-related lockdowns in China were likely to exacerbate supply chain disruptions.