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Wall Street Today | Bond Traders Now Lean Toward Quarter-Point Fed Hike in February

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Moomoo Recap US wrote a column · Dec 13, 2022 18:21
Wall Street Today | Bond Traders Now Lean Toward Quarter-Point Fed Hike in February
MACRO
US Core Inflation Slows, Giving Fed Some Breathing Room on Rates
The consumer-price index climbed 7.1% in November from a year ago, down sharply from 7.7% in October. Excluding food and energy, the consumer price index rose 0.2% in November and was up 6% from a year earlier, according to a Labor Department report Tuesday. Economists see the gauge — known as the core CPI — as a better indicator of underlying inflation than the headline measure.
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Bond Traders Now Lean Toward Quarter-Point Fed Hike in February
While interest rate swaps all-but-confirm a 50 basis-point move at Wednesday's decision, a dovish repricing has swept through the Fed-dated contracts. In total, an additional 84 basis points of hikes are now priced into the next two policy meetings — favoring 50 basis points, then a 25 basis-point move.
SECTORS
Inflation Retreat Puts World's Biggest Bond ETFs on Pace for a Blowout Quarter
The world's biggest bond exchange-traded funds continued a dramatic rally on Tuesday after cooler consumer-price data indicated the Fed has made more headway in its fight to tame high inflation.
Shares of the mega $85.5 billion $Vanguard Total Bond Market ETF(BND.US)$ climbed 0.7% Tuesday, helping to put the world's biggest bond ETF on pace for a roughly 3.3% quarterly gain, according to FactSet data.
>>Read more
Wall Street Sees Energy Stocks Beating Market for a Third Year in 2023
Energy shares are set to trounce the broader US market for the second straight year and most Wall Street analysts see that run extending into 2023, for one key reason: They're still the cheapest stocks around.
COMPANY
Tesla Stock Rout Puts Market Cap Below $500 Billion
$Tesla(TSLA.US)$ shares have been in a freefall over the past few months, sinking nearly 40% since the end of September. The stock closed down 4.09% at $160.95 in New York, recouping some of the losses from earlier in the session. The shares fell as much as 6.5% on Tuesday, briefly taking its market capitalization below $500 billion.
Apple Is Reportedly Preparing to Allow Third-Party App Stores on iOS
$Apple(AAPL.US)$ is reportedly preparing to open iOS to competing app stores. According to Bloomberg's Mark Gurman, the company's software and services teams are redesigning the platform to "open up key elements." That effort is likely to end in Apple giving iPhone and iPad users the option to download third-party apps without going through the App Store.
Moderna Soars 20% after the Drug Maker Posts Upbeat Results from Cancer Vaccine Trial
$Moderna(MRNA.US)$gapped up 20% on Tuesday after announcing that its $Merck & Co(MRK.US)$ partnered cancer vaccine met the primary efficacy endpoint.
>>Read more
Microsoft Says It Offered FTC Consent Decree on Call of Duty
$Microsoft(MSFT.US)$ said that antitrust regulators shrugged off its offer to make Call of Duty available to gaming rivals — including $Sony(SONY.US)$ — as part of its $69 billion purchase of $Activision Blizzard(ATVI.US)$ .
Source: Bloomberg, Dow Jones, CNBC, Yahoo Finance
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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