What the Fed Decision Means for Markets
What’s in Today’s Report:
- What the Fed Decision Means for Markets
- Why Stocks Didn’t Fall More Yesterday Despite the Hawkish Fed (Important)
- EIA Analysis and Oil Market Update
Futures are sharply lower as markets digest yesterday’s Fed decision and a deluge of global central bank rate hikes.
By the time stocks open today, seven separate global central banks (including the Fed, ECB, BOE and Swiss National Bank) will have hiked rates over the last 24 hours and while it was all expected, it’s still weighing on sentiment.
Today will be a very busy day of central bank decisions and economic data. First, we get the BOE Rate Decision (E: 50 bps hike) and ECB Rate Decision (E: 50 bps hike) and the keys there will be the commentary (do either central bank hint that they’re close to the end of tightening).
On the economic front, the key reports today are (in order of importance): Philly Fed Manufacturing Index (E: -9.9), Empire State Manufacturing Index (E: -0.4), Jobless Claims (E: 230K), Retail Sales (E: -0.2%) and Industrial Production (E: 0.1%). If the data can show moderation and easing price pressures (especially in Empire and Philly) that’ll be a positive for stocks.