Top Things to See before the Stock Market Starts
U.S. stock futures fell on Wednesday; This indicates an openness that would have given up the strong rally of the previous session, The day before the first day of the Federal Reserve Chairman Jerome Powell’s economic show on Capitol Hill. The Dow rose 2.15% to 641 points on Tuesday to start the week with a reduced holiday. The Nasdaq and S&P 500 rose 2.51% and 2.45%, respectively. Tuesday’s drop came after the S&P 500 had its worst week since March 2020, The month after the Covid-19 pandemic was announced.
Powell plans to submit a two-time Fed monetary policy report to the Senate Banking Committee on Wednesday and the Congressional Financial Services Committee on Thursday. The head of the Fed will make the prepared remarks and ask the deputies questions. Rising inflation and whether the central bank is doing enough to stop it will undoubtedly be the main focus of the hearings. In a review last week, the Fed said the fight against inflation was “unconditional.” It is worth noting that the Fed raised interest rates by 75 basis points during the June meeting. The next meeting in July predicted an increase of a similar scale.
Oil prices fell 4% on Wednesday, At about $105 per barrel. A few hours before President Joe Biden’s announcement of the alleged afternoon, Demanding a temporary suspension of the federal gasoline tax at 18.4 cents per gallon. However, Congress, including many Democrats, faces significant opposition to gas tax breaks. Gas prices remain at around $5 per gallon nationally; Before the summer driving season thickens. Biden used many levers to try to reduce prices, including barrel record output from U.S. strategic reserves, Refusal to produce, and pressure on OPEC countries, And American energy companies to increase production.
Stock Market
Traders switched to bonds on Wednesday, raising the 10-year treasury price; While its yield fell to about 3.2%. Bond values and yields are moving in the contra direction. Last week, the jump in revenue reached an 11-year high. The Fed’s highest interest rate since 1994; Increased demand for regulated rate mortgages. These home loans are considered riskier. They usually offer low fixed rates; For five, seven or ten years and then adjust current future rates, which may be higher. Mortgage applications to buy a home rose 8% last week; however, it was 10% less than in the same week last year. Refinancing demand fell 3% last week; Statistically, it was 77% lower than the previous week.
Bitcoin traded above $20,000 on Wednesday. However, trading was lower. The world’s largest cryptocurrency returned $18,000 on Tuesday. The currency fell to a critical level of $20,000 for the first time since December 2020. At the low on Saturday, Bitcoin was about 74% lower than the all-time high. More than $68,000 in November, the Nasdaq’s latest record high. Currently, the total capitalization of the crypto market is approximately $950 billion, which is significantly lower than the $2.9 trillion peaks in November last year.
