ModernDayCaesar
commented on
Here is what happened on Wednesday in the U.S. stocks market.
The stock market was subdued ahead of the year-end FOMC meeting. In the late-day trading session, stocks rallied when the Fed statement came out, which injected faith into investors because it showed the determination to fight inflation without restraining economic growth.
Key takeaways - Hawkish talk, dovish action
1. Speed up tapering, on track to end bond buying mid-March
2. Keep the federal funds rate in a target range of 0% to 0.25%
3. Fed forecasts three rate hikes in 2022 and three more in 2023
4. Interest rates policies are closely related to employment data
Why did the market jump on the Fed's decision?
1. Traders have prepared for the worst. It could be an explanation to the rally on a Fed hawkish decision. Since the last Fed meeting, the market already expected hawkish decisions such as tapering speed up and interest hikes.
2. Federal Reserve Chairman Jerome Powell balanced his rates outlook with a positive outlook of the economy.
3. Investors are somewhat encouraged by the Fed's recognition and determination to fight inflation.
“It seemed like there was some hedging demand into the event, perhaps relief that the event has happened, regardless of outcome,” said Danny Kirsch, head of options at Cornerstone Macro LLC. “The event is gone, sell your hedge and move on.”
The bottom line
Daily fluctuations of the stock markets are directly or indirectly affected by the changes in macroeconomic factors.
Therefore, knowing more about the Federal Reserve is helpful for your trading. Click to access the free course:
[Weekly Wins]
For more investment knowledge and trends, welcome to Courses in the Community.
$S&P 500 Index(.SPX.US$$Dow Jones Industrial Average(.DJI.US$$Nasdaq Composite Index(.IXIC.US$
The stock market was subdued ahead of the year-end FOMC meeting. In the late-day trading session, stocks rallied when the Fed statement came out, which injected faith into investors because it showed the determination to fight inflation without restraining economic growth.
Key takeaways - Hawkish talk, dovish action
1. Speed up tapering, on track to end bond buying mid-March
2. Keep the federal funds rate in a target range of 0% to 0.25%
3. Fed forecasts three rate hikes in 2022 and three more in 2023
4. Interest rates policies are closely related to employment data
Why did the market jump on the Fed's decision?
1. Traders have prepared for the worst. It could be an explanation to the rally on a Fed hawkish decision. Since the last Fed meeting, the market already expected hawkish decisions such as tapering speed up and interest hikes.
2. Federal Reserve Chairman Jerome Powell balanced his rates outlook with a positive outlook of the economy.
3. Investors are somewhat encouraged by the Fed's recognition and determination to fight inflation.
“It seemed like there was some hedging demand into the event, perhaps relief that the event has happened, regardless of outcome,” said Danny Kirsch, head of options at Cornerstone Macro LLC. “The event is gone, sell your hedge and move on.”
The bottom line
Daily fluctuations of the stock markets are directly or indirectly affected by the changes in macroeconomic factors.
Therefore, knowing more about the Federal Reserve is helpful for your trading. Click to access the free course:
[Weekly Wins]
For more investment knowledge and trends, welcome to Courses in the Community.
$S&P 500 Index(.SPX.US$$Dow Jones Industrial Average(.DJI.US$$Nasdaq Composite Index(.IXIC.US$
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ModernDayCaesar
commented on
What's new
US stock indexes gained ground on Tuesday with Nasdaq leading the advance as investors were relieved that Federal Reserve Chair Jerome Powell's testimony to Congress did not include any major surprises.
Why the reaction?
The market has been trying to digest the interest rate hikes for weeks. Investors are already prepared for the worst. When there was no surprise news, the market tended to recoup some losses immediately.
Moreover...
US stock indexes gained ground on Tuesday with Nasdaq leading the advance as investors were relieved that Federal Reserve Chair Jerome Powell's testimony to Congress did not include any major surprises.
Why the reaction?
The market has been trying to digest the interest rate hikes for weeks. Investors are already prepared for the worst. When there was no surprise news, the market tended to recoup some losses immediately.
Moreover...
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ModernDayCaesar
commented on
The market slide sharply
U.S. equities deepened losses Wednesday and technology stocks plunged for a second day as rising Treasury yields added to growth concerns. Shares in Asia-Pacific fell on Thursday, following in the footsteps of the U.S. overnight.
$S&P 500 Index(.SPX.US$ and $Dow Jones Industrial Average(.DJI.US$ both fell over 1%, while the tech-heavy$Nasdaq Composite Index(.IXIC.US$ saw its biggest one-day loss si...
U.S. equities deepened losses Wednesday and technology stocks plunged for a second day as rising Treasury yields added to growth concerns. Shares in Asia-Pacific fell on Thursday, following in the footsteps of the U.S. overnight.
$S&P 500 Index(.SPX.US$ and $Dow Jones Industrial Average(.DJI.US$ both fell over 1%, while the tech-heavy$Nasdaq Composite Index(.IXIC.US$ saw its biggest one-day loss si...
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ModernDayCaesar
liked and commented on
There is a cliché on Wall Street: Don't fight the tape, don't fight the Fed.
Investors around the world are closely watching the latest decision of the Federal Reserve on Wednesday.
As concerns about inflation have intensified, CNBC Fed survey respondents believe that the Fed will announce its decision to cut interest rates on Wednesday and start raising interest rates earlier than previously predicted.
What's Fed tapering?
Buying assets-backed securities to stimulate economic recovery is one of tools used by the U.S. Federal Reserve to manage the health of economy.
Such asset buying, along with a low interest rate is called quantitative easing (QE). It's a way of pumping money into the economy.
When the Fed believes that they economy has recovered sufficiently, it will wind down asset purchases. This process is called tapering.
What's the effect?
Reduction usually heralds the end of quantitative easing financial policies. And it’s a signal of monetary tightening.
In other words, the interest rate will rise and we need bear higher costs such as company borrowing costs, mortgages, auto and housing loans.
Normally, the volatility of stock markets will increase as the tapering looms.
Knowing more about the Federal Reserve is also helpful for your trading.
Click to access the free course:
For more investment knowledge and trends, follow 'moomoo Courses' to stay tuned!
$S&P 500 Index(.SPX.US$$Dow Jones Industrial Average(.DJI.US$$Nasdaq Composite Index(.IXIC.US$
Investors around the world are closely watching the latest decision of the Federal Reserve on Wednesday.
As concerns about inflation have intensified, CNBC Fed survey respondents believe that the Fed will announce its decision to cut interest rates on Wednesday and start raising interest rates earlier than previously predicted.
What's Fed tapering?
Buying assets-backed securities to stimulate economic recovery is one of tools used by the U.S. Federal Reserve to manage the health of economy.
Such asset buying, along with a low interest rate is called quantitative easing (QE). It's a way of pumping money into the economy.
When the Fed believes that they economy has recovered sufficiently, it will wind down asset purchases. This process is called tapering.
What's the effect?
Reduction usually heralds the end of quantitative easing financial policies. And it’s a signal of monetary tightening.
In other words, the interest rate will rise and we need bear higher costs such as company borrowing costs, mortgages, auto and housing loans.
Normally, the volatility of stock markets will increase as the tapering looms.
Knowing more about the Federal Reserve is also helpful for your trading.
Click to access the free course:
For more investment knowledge and trends, follow 'moomoo Courses' to stay tuned!
$S&P 500 Index(.SPX.US$$Dow Jones Industrial Average(.DJI.US$$Nasdaq Composite Index(.IXIC.US$
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ModernDayCaesar
commented on
could I get some assitance like English help I'll pay if you can direct to payment
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ModernDayCaesar : clear to the point
ModernDayCaesar :