Dow Jones futures rose slightly early Thursday, while the S&P 500 futures rose and the Nasdaq futures fell. Treasury yields continued to rise and moved towards another milestone.
The rally in the stock market turned sharply negative on Wednesday on the comments of the Federal Reserve, the session ended with a low level. Microsoft (MSFT), Google Stock, AMD and Nvidia are coming under increasing pressure, while shares of Apple and Tesla are also starting to show pressure. Commodity, revolving and financial stocks are still doing well, but the weight is negative.
Again, Treasury yields driven market activity on Wednesday. The 10-year treasury rose 1.7% for the first time in nine months following the release of the December Fed meeting minutes.
Fed Minutes Hawkish
Policymakers signaled that the central bank’s interest rate hike could come sooner than expected, as the central bank showed real concern about inflation at the December meeting.
At the December meeting, policymakers agreed to expedite bond cuts, cutting $ 30 billion a month in monthly property purchases. That means new bond purchases will close in mid-March, setting the stage for real central bank tightening. It is noteworthy that some members wanted to start Reducing the central bank’s balance sheet “At some point” after the first tariff increase. In fact, “many participants decided that the exact speed of the balance sheet report would be faster than it was in the previous normalization episode.”
This is a major change in the tone of central bank chairman Jerome Powell after the December policy meeting. When he said policymakers were starting to talk about reducing the balance sheet, he assured Wall Street that he would take a “careful, systematic approach.”
The next federal meeting is January 25-26.
10-year Treasury revenue rose 4 basis points to 1.705% on Wednesday. It peaked in October and November and peaked in early April. Benchmark Treasury revenue rose 19 basis points for the week.
Meanwhile, the two-year Treasury dividend, which is closely linked to central bank activity, rose 7 basis points to 0.83% on Wednesday, the highest since March 2020. That means Treasury yields actually shrank slightly on Wednesday. This is not good news for banks’ traditional lending short and long lending model.
Apple, Tesla pull back
In megacopes, Apple (APL) And Tesla (DSLA) Growth is no longer shoulder to shoulder in selling. AAPL stock fell 2.66% on Wednesday, but could still build one Three weeks-tight Sample after this week. Tesla shares are still up moderately for a week after rising on Monday in blowout deliveries, but have fallen below the buying point.
Microsoft Stock, Google Parent letters (Google), Advanced micro devices (AMD), Nvidia (NVDA) And Facebook parents Meta platforms (FB) All are found damaged. Microsoft Stock and Google, along with Nvidia, lost more ground from the 50-day lineup. AMD stock fell below that critical level. FB stock fell below its 50-day and 200-day lines on Wednesday, while aggressively lowering trendline entry.
Software and other high-value stocks have already suffered and continued to struggle in recent days and weeks. Computer-view-chip maker Umbrella (Amba) Was down 19% on Wednesday after sinking 5.1% on Tuesday.
Nugor (Naked) And Signature Bank (SBNY) Exploded, at the same time Senior Energy (LNG) A trendline entry was deleted. All are currently in leading groups and fields. But these stocks also rose as the broader market came under pressure. SBNY stock closed below its buying point, while LNG stock remained positive.
Nucor and LNG joined the stock IBD Leaderboard, Which also includes Tesla, Microsoft, Google, Nvidia and AMD. NUE stock is active Swing Trader And it was Wednesday IBD Day Stock. Microsoft and GOOGL shares IBD long-term leaders. There are Tesla shares and AMD IBD 50.
The video embedded in this article discusses an important market day and analyzes SBNY Stock, Nucor and Reliance Steel (R.S.)
Dow Jones Futures Today
Dow Jones futures rose 0.3%. The S&P 500 futures rose and the Nasdaq 100 futures fell 0.4%.
The 10-year treasury dividend rose to 1.73%, the highest in the morning, but closed at a peak of 1.765% in March 2021, the highest level in nearly two years. Crude oil futures are up more than 1%.
Stock market rally
The stock market rally changed key indices again, but they all moved south after the 2 ET Fed minute release in the afternoon and closed in the worst conditions of the day.
The Dow Jones Industrial Average fell 1.1% on Wednesday Stock market trading, After trading for most of the session. The S&P 500 index fell 1.9%. The Nasdaq compound fell 3.3%. Small cap Russell 2000 fell 3.4%.
U.S. crude rose 1.1% to $ 77.85 a barrel, down from $ 78 a barrel. Natural gas prices have also risen.
In the middle The best ETFs, Innovator IBD 50 ETF (FFTY) Fell 4.7%, while Innovator IBD Breakout Opportunities ETF (BoatLost 2.3%. iShares Extended Technology-Software Industry ETF (IGVFell 4.9%. MSFT stock is a major IGV holding. WANEX Vectors Semiconductor EDF (SMH) Fell 3.4%, with key components of AMD and Nvidia stock.
SPDR S&P Metals & Mining ETF (XME) 0.1% higher, a component of Newcore stock. Global X US Infrastructure Development EDF (Pavement) Closed down 1.2%. US Global Jets ETF (JETS) Decreased by 1.7%. SPDR S&P Homebuilders ETF (XHBSlipped 2.7%. Energy Selection SPDR ETF (XLE) Closed below the breakaway and financial choice SPDR ETF (XLF) Decreased by 1.2%. Health Care Selected Sector SPDR Funding (XLVFell 0.7%.
Market Rally Analysis
Very different market boom. The Dow Jones and S&P 500 fell sharply on Wednesday. Nasdaq fell below that critical level on Wednesday after adjusting for losses to maintain its 50-day line on Tuesday.
Shares of Microsoft and Google fell in December as growth damage was not limited to those with eye-catching ratings. Both AMD Stock and Nvidia have yet to see a 50-day / 10-week series rebound physically, and their lows end in December. Meanwhile, the carnage continues in the name of software stocks and every high-value development.
Tesla shares fell 5.35% to 1,088.12. Increased by another 3% during the week. But after touching 1,208 on Tuesday morning, it is below 1,119.10 again. Buy point. Apple shares fell 2.7% on Wednesday, but are still above its 21-day tax.
Shares of Tesla and Apple still appear relatively stable, but so have Microsoft, Google, AMD and Nvidia at the end of last year.
Russell 2000 fell below its 200-day mark.
The S&P 500 and Dow Jones are still below the peak. Real economic names work relatively well. This includes steelmakers such as Newcore Stock and energy stocks such as LNG. Financial institutions such as Signature Bank retain or rise to recent gains.
Treasury yields will be at the front and center of the stock market rally for at least the next few days.
What to do now
There are stocks and sectors that are working now. Almost all investors this week generally saw gains. But Tuesday’s diverse market turned into a broad, sharp sell-off on Wednesday. And it will drown out sectors with resilience. Alternatively, a return to growth may not be surprising and may be bad news for finances or cycles.
On the other hand, be wary of any one-day spikes in growth stocks, especially hard vulnerabilities. The software industry and many other high-value names are in significant revision. One day pop downstairs would not be surprising. Investors who have suffered severe losses in technology stocks may prefer to use any reconsideration as an opportunity to exit, rather than any opportunity to load.
Overall, investors need to take a more defensive approach in the short term. Do not allow the winners to become losers or the losers to become serious losers.
According to The big picture Every day the direction of the market and the leading stocks and sectors must be consistent.
Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.
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