Trading on Wall Street is conducted with sharp price increases while investors seem to have digested the news from yesterday’s interest rate announcement in the US, according to which the members of the Open Market Committee expect only one more interest rate hike this year. The Nasdaq index jumps by 2.5%, the Dow rises by 1.45% And the S&P 500 climbs 1.66%.
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The trading day in the US is expected to open with price increases in the leading indices, the futures contract on the Nasdaq 100 index strengthens up to 0.9%, the S&P 500 rises about 0.5%. Last night, the indices closed in sharp declines after the central bank’s interest rate decision, with all the leading indices losing about 1.6%.
The interest rate did rise by 25 basis points as expected when the central bank hinted at its future ambitions regarding the continuation of interest rate hikes that dropped substantially after the banking crisis in the last two weeks. Investors were left confused by the lack of coordination between Treasury Secretary Janet Yellen and Central Bank Chairman Jerome Powell when they both spoke At the same time, one on Capitol Hill and the other at the press conference after the interest rate decision. Some things were not coordinated and even contradictory, so the market remained confused.
The interest rate contracts after last night’s interest rate increase stand for a 50% chance of another increase of 25 bps. Although there is still time for the next meeting, it seems that we are at the end of the interest rate increases that began at the beginning of last year. The bond market has calmed down a bit and the two-year yield has dropped to a level of 3.96% The 10-year yield stands at 3.52% and it seems that the market has reached a kind of status quo.
The markets in Europe materialize a little, the DEX and the KAC lose 0.3% and 0.2% respectively. The UK is down 0.65% after earlier raising interest rates by another 25 basis points.
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Kevin Bays (COIN) plunges 15% in early trading after it received a note from the US Securities and Exchange Commission, following which Oppenheimer downgrades the stock to a market performance recommendation from outperform.
Block (SQ) is plunging nearly 20% in premarket trading after research firm Hindenburg issued negative work on the company. According to them, after a two-year study, Block allowed unsupervised negative activity for some customers, in addition, the company inflated the number of users of the company’s payment application.
Adobe (ADBE) Research firm West Up Park Capital reiterates a buy recommendation for the company with a target price of $110 per share.
The movie theater chain AMC (AMC) again receives a sell recommendation from Citi and a target price of $1.6 per share.