The market continued to correct as the US Dollar strengthened and Treasury yields rose on Friday. Defensive sectors in the S&P 500 gained while other sectors sank
The Wednesday rally did not last and in a whiplash move markets sold off on Thursday, with some of the worst single-day losses since 2020.
Jerome Powell gave unexpected but specific guidance on not only today’s interest rate hikes, but also the next two. In addition, the specifics around reducing the balance sheet helped squash the fear that the Fed would move too fast.
There was less choppiness in a lighter volume trading day as investors way for the Fed interest rate decision on Wednesday.
A late rally helped stocks close higher on Monday as long-term Treasuries rose above 3% ahead of the Fed meeting this week
Strong earnings from big tech helped boost the stock market on Thursday, led by Meta, PayPal and Qualcomm .
Equities were mixed as the US Dollar continues to strengthen against the Euro and Japanese Yen.
Investors sold off growth stocks ahead of big tech earnings this week, fearing the worst for the outlook on future growth. Microsoft and Google painted different pictures with their earnings reports after the market closed.
Investor sentiment changed mid-day, reversing a gap-down open into gains across all major indexes by the end of the day.
Indexes continued to dip as investors absorbed the likely 50-basis point interest rate hike coming in a few weeks.