Dow Jones Futures: Market Rally Flashes Bullish Signal On Fed, China, Russia-Ukraine News; What To Do Now – Investor’s Business Daily
Dow Jones futures fell modestly early Thursday, along with S&P 500 futures and Nasdaq futures. The stock market rally boasted strong gains Wednesday, closing at session highs amid big news from China, the Russia-Ukraine war and a hawkish Federal Reserve.
J.B. Hunt Transport Services (JBHT), Costco Wholesale (COST) and Harmony Biosciences (HRMY) broke out Wednesday, at least intraday, while Rambus (RMBS) flirted with a buy point.
Nvidia stock, while well off highs, made a strong move toward a very aggressive entry.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures retreated 0.2% and Nasdaq 100 futures lost 0.2%.
The 10-year Treasury yield fell 5 basis points to 2.14%.
Crude oil prices rose 6% overnight to above $100 a barrel.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Fed Rate Hike
The Fed raised interest rates by a quarter point on Wednesday as the central bank seeks to rein in soaring inflation while navigating a slew of economic uncertainties. Policymakers also signaled they will hike rates six more times in 2022, while also planning to reduce the Fed’s massive balance sheet soon.
The Fed policy announcement noted Russia’s Ukraine invasion is “likely to create additional upward pressure on inflation and weigh on economic activity.”
Fed chief Jerome Powell, in his post-meeting news conference, said the central bank plans to raise rates steadily over 2022. But he again stressed that policymakers will be “nimble,” with faster or slower action as conditions warrant.
The 10-year Treasury jumped to 2.24%, intraday, the highest since May 2019, but pared gains during Fed chief Powell comments. The 10-year yield closed up 3 basis points to 2.19%. The two-year yield jumped 7 basis points to 1.93%. Meanwhile, the 30-year Treasury yield fell 6 basis points to 2.45%.
The flattening yield curve signals concerns about economic growth going forward. Fed chief Powell said the risk of recession over the next year “is not particularly elevated.”
Russia’s Ukraine Invasion
President Volodymyr Zelenskyy addressed the U.S. Congress virtually on Wednesday, urging more support. President Joe …….