Why Stocks Dropped After the Fed Decision
What’s in Today’s Report:
- Why Stocks Dropped After the Fed Decision
Futures are sharply higher as oil prices fall and Treasury yields retreat following yesterday’s Fed-driven selloff.
Oil prices are lower as Saudi Arabia expects to restore half of its East-West pipeline capacity within days and full flows within six weeks, easing concerns over global crude supplies.
Economically, Eurozone HICP eased to 3.2% y/y vs. (E) 3.3%, while Core HICP met estimates at 2.4%.
Today, focus will be on Jobless Claims (E: 208K) and Philly Fed (E: 32.6) for additional insight into the economy following yesterday’s Fed decision. Solid economic data without renewed pressure on yields would help extend this morning’s rebound.
Finally, Housing Starts (E: 1.315M) and Pending Home Sales (E: 0.4%) are also due. The Treasury will auction 4- & 8-Week Bills at 11:30 a.m. ET and 10-Yr TIPS at 1:00 p.m. ET. There are no Fed speakers or notable earnings reports today.
Sevens Report Technicals: Is This a Rebound… or Another Rally Not to Trust?
Long-term Treasury yields have surged, crude oil has jumped again, and the S&P 500 is approaching an important support area. Short-term conditions are increasingly oversold, raising the odds of a rebound… but a bounce is not the same thing as a durable rally.
This week’s Sevens Report Technicals examines the evidence that would signal demand has truly returned, including breadth, leadership, momentum, and key support levels. It also looks at a growing portfolio risk: the unintended duration exposure created by rising long-term rates, which can extend well beyond bonds into rate-sensitive equities and traditionally defensive sectors.
Click here to see what the charts are telling us… and what needs to happen next.
