Markets rose strongly on Wednesday, reversing their previous two-day losing run, as the Federal Reserve Chair Jerome Powell injected some optimism regarding the central bank’s interest-rate trajectory.
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Macro News in Focus
In his Congress testimony, Powell reiterated that the Fed would need more evidence that inflation continues to ease before they embark on an easing path. However, he confirmed that he sees an interest-rate reduction later this year as “appropriate” should the trend of price deceleration continue.
Investors’ attention is now turning to a series of key labor-related reports due tomorrow, poised to offer insights into the job market’s health. The last several days’ data hinted at a still-hot job market; however, analysts don’t expect Friday’s reports to tip the scales in terms of the Fed’s decision making.
Notable Stock News
New York Community Bancorp (NYCB) sent tremors through the regional bank stocks, initially plummeting by 45% amid news of a desperate cash shortage, before making a sharp rebound following the announcement of a $1 billion capital raise and the addition of former Treasury Secretary Steven Mnuchin to its Board.
CrowdStrike Holdings (CRWD) reported a sharp swing to bottom-line gain in its latest quarterly report, topping forecasts. The cybersecurity firm lifted its adjusted profit guidance, saying it sees strong enterprise spending. The stock soared by 11%, notching a record high.
Foot Locker (FL) tumbled 30% after the footwear retailer sharply lowered its current fiscal year’s profit guidance.
News-Making Assets
Bitcoin (BTC) smashed another record high amidst unusually high trading volatility, continuing its rally supported by increasing inflows into cryptocurrency ETFs.
Gold (XAU) also surged to a new record high, getting a boost from declining Treasury yields as Powell confirmed that the Fed’s next move will be a cut.
