Daily summary: US stocks rally after Fed decision

10:46 PM June 15, 2022

  • European indices snapped a six-day selloff to end Wednesday’s session higher, with DAX 40 adding 1.36%, mainly thanks to solid performance of the financial and technology sectors;
  • ECB said it would skew reinvestments of maturing debt while announcing the speed-up of a new tool kit to rein on soaring borrowing costs;
  • US stocks extend gains on Wednesday, with the Dow rising over 2.0%, the S&P 500 climbing 2.6% and the Nasdaq 3.7%;
  • The yield on the 10-year US Treasury note fell below the 3.4% level after the Federal Reserve hiked its funds rate by 75bps, in line with analysts’ estimates;
  • Chairman Powell said a 75bps rate hike is not a common occasion and left the magnitude of the next rate increase open; 
  • US retail sales unexpectedly fell in May, indicating that American consumers are already cutting back on spending; 
  • AUD and GBP are the best performing major currencies while USD and EUR lag the most;
  • EIA data showed an unexpected jump in US crude production that hit its highest level since April 2020;
  • Oil prices continue to move south. Brent and WTI fell more than 1%, while NATGAS is trying to recover from yesterday's sell-off and is gaining over 3%;
  • Precious metals are performing quite well, gold adds more than 1.5%, and silver gains over 3.5%;
  • Major cryptocurrencies inches slightly higher on Wednesday. Nevertheless, today's gains are not very impressive given the scale of recent sell-off;

After today's Fed decision, we could observe a positive reaction of major Wall Street indices. US500 defended the support at 3702.5 pts, which coincides with 127.2% external Fibonacci retracement and next buyers managed to above the resistance at 3808 pts. Source: xStation5

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