Stock market: Wall Street ends, emboldened by Fed determination

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MARKET OVERVIEW. The New York Stock Exchange closed higher on Wednesday, buoyed by minutes from the US Federal Reserve’s (Fed) latest meeting and proactive speech by its members in the face of inflation.

The Toronto Stock Exchange’s flagship index rebounded late in Wednesday’s session to avoid ending at its lowest level in 15 months but still closed lower on weakness in crude oil and metals and recession fears.

Consult market news (again).

Stock market indices at close of trading

In Toronto, the S&P/TSX fell 104.50 points (-0.55%) to 18,729.66 points.

In New York, the S&P500 rose by 13.69 points (+0.36%) to 3,845.08 points.

the Nasdaq rose by 39.61 points (+0.35%) to 11,361.85 points.

the DOW closed up 69.86 points (+0.23%) at 31,037.68 points.

the loons fell $0.0002 (-0.0315%) to $0.767.

the oil fell $1.37 (-1.38%) to $98.13.

L’gold fell $26.70 (-1.51%) to $1,737.20.

the Bitcoin rose $142.15 (+0.70%) to $20,363.76.

the context

The market, which has traded in a tight range all day, “turned from negative to positive when the minutes came out this afternoon,” Cresset Capital’s Jack Ablin said of the minutes of the Fed’s latest monetary policy committee meeting.

“The Fed used the June meeting to dispel any doubts about its willingness to do what is necessary to stabilize prices,” commented Harris Financiel Group’s Jamie Cox.

In the minutes, committee members consider it “appropriate” to proceed with further rate hikes after June and accept the idea that the tightening cycle should affect the labor market.

The Federal Reserve “held a hard line and the market likes that,” said Spartan Capital’s Peter Cardillo.

If interest rate rises are often unfavorable for stock markets, especially at current rates, then controlling inflation would be a support for Wall Street.

The bond market also followed the Fed’s determined tone and interest rates rose again after falling sharply in the past few days.

The US 10-year Treasury yield rose to 2.92% from 2.81% the previous day. It was significantly lower than 2-year rates (2.97%), a phenomenon known as yield curve inversion and often seen as a harbinger of a recession.

As traders increasingly saw the Fed slowing rate hikes after the July meeting to reflect the slowing economy, Wednesday provided an opportunity for a recalibration in this regard.

The probability of a double increase of 0.75 percentage points in July and September has thus increased significantly, according to traders.

Paradoxically, while tech and growth stocks were boosted by the decline in bond yields on Tuesday, they continued to rise on Wednesday despite the same yields rising sharply.

“We are so unbalanced in June that the market is just looking for a reason for hope,” argued Briefing.com’s Patrick O’Hare.

semiconductor manufacturer Intel (INTC, $36.99, +0.82%, +0.30 points), Texas Instrument (TXN, $150.81, +1.15%, +1.71 points) and Qualcomm (QCOM, $127.06, +0.98%, +1.23 points) were wanted again.

The indices were also supported in particular by very large caps Apple (AAPL, $142.92, +0.96%, +1.36 points), Alphabet (GOOGL, $2291.44, +1.16%, +26.18 points) and Nvidia (NVDA, $151.30, +1.11%, +1.66 points).

In contrast, Netflix (NFLX, -1.82 points) fell 0.98% to $184.06, on the back of a note from Barclays calling for a larger-than-expected drop in its subscriber base.

The meal delivery platform DoorDash (DASH, $69.36, -7.37%, -5.52 points)and Uber (UBER, $21.50, -4.53%, -1.02 points)also available in this market about Uber eatsIt was difficult for her to interfereAmazon (AMZN, $114.33, +0.73%, +0.83 points) in the capital of his rival dig liftaffiliate Just Eat Takeaway (TKWY, €15.86, +15.46%, +2.12 points).

The manufacturer of electric vehicles Rivian jumped up (RIVN, $29.66, +10.42%, +2.80 points) after reporting a 72% increase in production in the second quarter (4,401 vehicles) compared to the first, even if the start-up’s volumes are still modest.

The news punishes its competitors Tesla (TSLA, $695.20, -0.57%, -4 points), Nikola (NKLA, $5.18, -0.19%, -0.010 points) Where Lordstown (RIDE, $1.69, -1.74%, -0.030 points).

Chinese stocks faltered after several million people in China were again locked down on Wednesday due to an epidemic. online sales platforms JD.com (9618, HKD250.00, -3.92%, -10.20 points) or Pinduo (PDD, $61.69, -7.40%, -4.93 points) have made a significant decline.

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