Wall Street’s main indexes rose on Wednesday, and gas prices jumped again.
The mixed economic data and bags have caused a welcome decrease in the bond and Treasury markets. Inventors are having optimistic moments before the FED minutes on Wednesday.
This week and the past week have delivered some mixed performances and gains in the main Wall Street indexes. The U.S. Treasury yield market posted a positive drop today as follows: the 10-year Treasury yields noted a 0,70% drop, and the 30-year Treasury yield declined by 1,47%. The Wall Street main index boosted its gains after the drops in Treasury yields, and the S&P 500 benchmark rose to 4.009 basis points. Today’s Nasdaq gains were led by tech titans; Amazon, Apple, and Meta all increased by 0.4% to 0.7%. As for the Dow Jones industrial average, the benchmark rose for a brief moment, and now it’s down by 0.16 percent as of 15:30 New York time.
Meanwhile, their stock is making its biggest move in the premarket, including HP stocks, which recorded a 2% increase in yesterday’s session. Yet, unfortunately, other growth stocks didn’t perform well on Tuesday’s session, including Nordstrom, Autodesk, and VMware.
Inventors are very optimistic about a 50 basis point hike at the next FED meeting, according to FED WATCH. Nonetheless, it appears that Federal Reserve policymakers are more likely to stick with the previous regime and maintain the 75% basis point interest rate hike.
Despite the wall street rebound in the past two weeks, the FED officials are not satisfied and are convinced that inflation will be tamed by an easing hike.
Market experts have another opinion about the FED’s aggressive and extreme policies. For the past eight months, tech stocks have been forced to reckon with higher interest hikes. As a result of these higher hikes, the vast majority of growth stocks lost a large proportion of their capital gains, share prices, and growth potential.
The higher inflation rate has affected the global supply chain and added to the oil shortage due to the Russian oil cut.
Today morning, the G-7 nations looked at the Russian cap price and the U.S. inventories. The Wall Street Journal noted that oil prices declined by more than 4% in Wednesday’s opening hours. Currently, the U.S. West Texas Intermediate is down by 4.15% to $77.50 per barrel. Brent oil dropped by 4,27% to $84,84. However, material gas prices jumped highly by 6,1% to $7,27 per gallon.
The decline in oil prices led to a 1.4% decline in the S&P 500 energy sector. The decline was expected due to the relationship between the two sectors.
In Europe, energy companies and manufacturing companies are moving towards a recession or a closing period. If this happens, it’s only a matter of time before the recession wave hits the U.S. market.
According to Sequoia’s Doug Leone, the U.S. market will not recover until late 2024, and the next recession will be larger than the 2008 crisis.