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2:51 PM · 17 March 2022

US OPEN: Wall Street mixed after hawkish Fed, despite strong data

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  • US indices opened lower but quickly returned above the yesterday’s close
  • Fed said that the economy and markets can withstand rate hikes
  • Data shows strong economic momentum

US stocks opened with slight bearish gap on Thursday but quickly returned to yesterday’s rally. US stock market gained significantly due to comments from Powell that the economy and markets should be able to withstand rate hikes. The previous two rate hike cycle showed that S&P 500 posted significant gains. New home construction rebounded with the strongest pace since 2006, initial jobless claims decreased once again and industrial production matched expectations with a gain of 0.5% in February. The market is still focused on war in Ukraine as the US said that will send additional military aid to Ukraine including armed drones and also that the US president Biden will talk with his Chinese counterpart Xi Jinping about the war on Friday.

The situation on the market is fragile as investors are reconsidering yesterday's Fed decision, in particular the decision to reduce its balance sheet. S&P 500 futures are below yesterday's close, but the cash index itself is gaining slightly. The index broke the downtrend line yesterday and may be looking to test the 4400 point area where the 250 session average and 50 session average are located. Source: xStation5

Company news:

One of the biggest market movers is Amazon which close the deal to buy movie studio MGM. The move is aimed at increasing video streaming operations.

Tesla also posts gains in today's session. Tesla decided to delay an about 1 billion USD bond offering backed by leases on its vehicles, due to market turbulences.  

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27 January 2026, 6:53 PM

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US100 gains 0.8%📈

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