Dow Jones Futures Jump – Fed Meeting
Dow Jones futures rose sharply on Wednesday; The S&P 500 and Nasdaq futures also increased, Microsoft grew sharply since the profit report. The company revenue in the first fiscal quarter exceeded Q2. Initially, the firm shares fell 5%; And then changed to higher, more robust instructions. It grew almost 4% in pre-market operations. MSFT shares dropped 2.7% on Tuesday; After a significant reversal on Monday, until a slight increase.
Microsoft revenue and guidance are essential to cloud computing competitors. Including Alphabet, Amazon, and HP. The two-day federation meeting ends Wednesday afternoon. There is speculation that Fed policymakers may once again accelerate the reduction in bonds; Completion of asset purchases instead of mid-March to mid-February. This indicates an even faster transition to immediate tightening. It is worth noting that the rise in Fed rates and the decline in the balance sheet should begin in the coming months.
Head Jerome Powell will hold a press conference after the meeting. His statement will decide how combative the central bank will be in the future months. At the end of 2018, rising rates and declining balances helped boost the bear market. The Fed quickly changed its course in early 2019; However, inflation was modest. When inflation peaks for several decades, the Fed may be forced to continue tightening. This is true even if the stock market continues to sell.
In any case, Powell’s comment on the Federal Reserve’s statement will contribute to large fluctuations in stock prices and treasury revenues. Shares of Microsoft and Tesla are on the IBD Leaderboard.
Futures and Stock Market
Dow Jones futures rose 1%. The S&P 500 was up 1.3%. The Nasdaq 100 futures were up 1.9%. US crude oil prices rose slightly, boosting solid profits. Natural gas futures jumped. The 10-year Treasury interest rate rose to 1.78% by three basis points. US crude oil futures rose 2.8%. The total was $85.60 per barrel.
The Innovator IBD 50 ETF fell 1.6%. iShares Expanded Tech-Software Sector ETF lost 3.7%. VanEck Vectors Semiconductor ETF fell 4%. SPDR S&P Metals & Mining ETF increased by 0.3%. US Global Jets ETF rose 0.4%. SPDR S&P Homebuilders ETF lost 1.9%. Financial Select SPDR ETF increased by 0.4%. Health Care Select Sector SPDR Fund fell by 0.6%.
Meanwhile, Tesla shares fell 1.3% to 918.40 on Tuesday. Shares fell to a minimum on Monday, before the loss was reduced. The TSLA stock no longer has a dual bottom base; However, it is still consolidated. Shares rose 3 points before the opening on Wednesday. Tesla’s stock reaction to profit and guidance on output, supply, and new products may lead to EV stocks; Also high P-E stocks.
Conclusion
Apple shares rose to 159.78; In total, it fell by 1.1%. Last week, Apple shares released a sell signal when it fell sharply through its 10-week line. Shares rose 2% on Wednesday. Apple shares in themselves can move markets. However, its revenue and guidance are likely to contribute or sink chipmakers and other names into the broader iPhone ecosystem. Energy stocks topped the table on Tuesday; When crude oil prices rose steadily.
Meanwhile, rising stocks continue to fight, including chips. The reaction to Microsoft shares was, in the end, good news for the Dow Jones futures. The decision of the federal session on Wednesday could be crucial for the market.
