{"id":1836,"date":"2023-03-07T08:02:28","date_gmt":"2023-03-07T13:02:28","guid":{"rendered":"https:\/\/embarrdowns.com\/stocks-react-to-fed-comments-as-rates-remain-on-the-rise\/"},"modified":"2023-03-07T08:02:28","modified_gmt":"2023-03-07T13:02:28","slug":"stocks-react-to-fed-comments-as-rates-remain-on-the-rise","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/stocks-react-to-fed-comments-as-rates-remain-on-the-rise\/","title":{"rendered":"Stocks React to Fed Comments as Rates Remain on the Rise"},"content":{"rendered":"

Stocks rose modestly on Monday as traders weighed comments from Federal Reserve officials on the path for interest rates.[0]<\/a><\/sup> The Dow Jones Industrial Average gained 0.1%, the S&P 500 rose 0.1%, and the Nasdaq Composite reversed down 0.1%.[1]<\/a><\/sup> Tesla (TSLA) fell 2%, and Dexcom (DXCM) dropped 7.9%.[2]<\/a><\/sup><\/p>\n

The yield on the 10-year Treasury note declined by 4 basis points to 3.94%, while the yield on the 2-year Treasury note dropped by 2 basis points to 4.87%.[3]<\/a><\/sup> Shares of Ciena (CIEN) rose 6% following the announcement of its fiscal-Q1 results, which were better than[2]<\/a><\/sup> Apple (AAPL) gained nearly 2% on Monday as Goldman Sachs initiated coverage with a buy rating.[4]<\/a><\/sup><\/p>\n

The Fed is set to begin two days of congressional testimony Tuesday, where Chair Jerome Powell will have the chance to explain the central bank’s planned response to a more resilient economy.[5]<\/a><\/sup> Last month, the Fed raised rates by a quarter-percentage-point, and investors will be looking for clues as to the amount of the hike at this month’s March 21-22 meeting.[5]<\/a><\/sup> As per the CME’s FedWatch Tool, traders are currently offering odds of 69% that the next meeting will result in a quarter-percentage-point rate hike.[6]<\/a><\/sup><\/p>\n

On Thursday, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, expressed his preference for “steady” quarter-point rate increases to reduce potential risks to the economy, noting that the effects of the rate hikes may not be felt until the spring.[7]<\/a><\/sup> He added that the Fed might be able to pause rate increases by mid- or late-summer.[7]<\/a><\/sup> He cautioned that if inflation figures were higher than expected, it could influence Fed policy.[7]<\/a><\/sup> Also, Fed Governor Christopher Waller said a string of \u201chot\u201d data might force the U.S. central bank \u201cto raise interest rates even more.\u201d[7]<\/a><\/sup><\/p>\n

Raphael Bostic, President of the Atlanta Federal Reserve, suggested that interest rates should be increased beyond 5%.[3]<\/a><\/sup> As part of an online essay, he added that the key rate would have to be held there until “well into 2024.\u201d[3]<\/a><\/sup><\/p>\n

Overall, stocks appear to be taking policymaker comments into account, with the Dow Jones Industrial Average bouncing 1.75% in last week’s stock market trading and the S&P 500 and Nasdaq both rising 1.9% and 2.<\/p>\n

0. <\/span>“U.S. Stocks Give Up Much of Early Gains” The Wall Street Journal, 6 Mar. 2023, https:\/\/www.wsj.com\/articles\/global-stocks-markets-dow-update-03-06-2023-e25e7d66<\/a><\/a><\/p>\n

1. <\/span>“Dow Jones Rises As Treasury Yields Extend Losses; Tesla Stock Falls On Price Cuts” Investor’s Business Daily, 6 Mar. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-fall-as-treasury-yields-extend-losses-apple-rallies-on-buy-rating\/<\/a><\/a><\/p>\n

2. <\/span>“Stocks Rise On Strength In Apple And Lower Bond Yields” Barchart, 6 Mar. 2023, https:\/\/www.barchart.com\/story\/news\/14813192\/stocks-rise-on-strength-in-apple-and-lower-bond-yields<\/a><\/a><\/p>\n

3. <\/span>“S&P 500, Dow, Nasdaq slump again on ongoing Fed concerns” Seeking Alpha, 1 Mar. 2023, https:\/\/seekingalpha.com\/news\/3942838-sp-500-dow-nasdaq-slump-again-on-ongoing-fed-concerns<\/a><\/a><\/p>\n

4. <\/span>“Stock market news today: Stocks pare gains, finish mixed to start busy week” AOL, 6 Mar. 2023, https:\/\/www.aol.com\/stock-market-news-today-stocks-123642555.html<\/a><\/a><\/p>\n

5. <\/span>“Futures: Will Powell Testimony Threaten Stock Market Rally?” Investor’s Business Daily, 7 Mar. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-will-powell-testimony-threaten-stock-market-rally-apple-tesla-in-focus<\/a><\/a><\/p>\n

6. <\/span>“Dow Jones Fades Ahead Of Powell Testimony; Ferrari Overtakes Tesla As Leader; Apple Pops” Investor’s Business Daily, 6 Mar. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-fades-ahead-of-key-powell-testimony-ferrari-stock-overtakes-tesla-stock-as-leader-tests-entry<\/a><\/a><\/p>\n

7. <\/span>“Stock Index Futures Move Higher As Dovish Fed Comments Boost Hopes Of Fed Pivot” Barchart, 3 Mar. 2023, https:\/\/www.barchart.com\/story\/news\/14739365\/stock-index-futures-move-higher-as-dovish-fed-comments-boost-hopes-of-fed-pivot<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Stocks rose modestly on Monday as traders weighed comments from Federal Reserve officials on the path for interest rates.[0]<\/a><\/sup> The Dow Jones Industrial Average gained 0.1%, the S&P 500 rose 0.1%, and the Nasdaq Composite reversed down 0.1%.[1]<\/a><\/sup> Tesla (TSLA) fell 2%, and Dexcom (DXCM) dropped 7.9%.[2]<\/a><\/sup><\/p>\n

The yield on the 10-year Treasury note declined by 4 basis points to 3.94%, while the yield on the 2-year Treasury note dropped by 2 basis points to 4.87%.[3]<\/a><\/sup> Shares of Ciena (CIEN) rose 6% following the announcement of its fiscal-Q1 results, which were better than[2]<\/a><\/sup> Apple (AAPL) gained nearly 2% on Monday as Goldman Sachs initiated coverage with a buy rating.[4]<\/a><\/sup><\/p>\n

The Fed is set to begin two days of congressional testimony Tuesday, where Chair Jerome Powell will have the chance to explain the central bank’s planned response to a more resilient economy.[5]<\/a><\/sup> Last month, the Fed raised rates by a quarter-percentage-point, and investors will be looking for clues as to the amount of the hike at this month’s March 21-22 meeting.[5]<\/a><\/sup> As per the CME’s FedWatch Tool, traders are currently offering odds of 69% that the next meeting will result in a quarter-percentage-point rate hike.[6]<\/a><\/sup><\/p>\n

On Thursday, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, expressed his preference for “steady” quarter-point rate increases to reduce potential risks to the economy, noting that the effects of the rate hikes may not be felt until the spring.[7]<\/a><\/sup> He added that the Fed might be able to pause rate increases by mid- or late-summer.[7]<\/a><\/sup> He cautioned that if inflation figures were higher than expected, it could influence Fed policy.[7]<\/a><\/sup> Also, Fed Governor Christopher Waller said a string of \u201chot\u201d data might force the U.S. central bank \u201cto raise interest rates even more.\u201d[7]<\/a><\/sup><\/p>\n

Raphael Bostic, President of the Atlanta Federal Reserve, suggested that interest rates should be increased beyond 5%.[3]<\/a><\/sup> As part of an online essay, he added that the key rate would have to be held there until “well into 2024.\u201d[3]<\/a><\/sup><\/p>\n

Overall, stocks appear to be taking policymaker comments into account, with the Dow Jones Industrial Average bouncing 1.75% in last week’s stock market trading and the S&P 500 and Nasdaq both rising 1.9% and 2.<\/p>\n

0. <\/span>“U.S. Stocks Give Up Much of Early Gains” The Wall Street Journal, 6 Mar. 2023, https:\/\/www.wsj.com\/articles\/global-stocks-markets-dow-update-03-06-2023-e25e7d66<\/a><\/a><\/p>\n

1. <\/span>“Dow Jones Rises As Treasury Yields Extend Losses; Tesla Stock Falls On Price Cuts” Investor’s Business Daily, 6 Mar. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-fall-as-treasury-yields-extend-losses-apple-rallies-on-buy-rating\/<\/a><\/a><\/p>\n

2. <\/span>“Stocks Rise On Strength In Apple And Lower Bond Yields” Barchart, 6 Mar. 2023, https:\/\/www.barchart.com\/story\/news\/14813192\/stocks-rise-on-strength-in-apple-and-lower-bond-yields<\/a><\/a><\/p>\n

3. <\/span>“S&P 500, Dow, Nasdaq slump again on ongoing Fed concerns” Seeking Alpha, 1 Mar. 2023, https:\/\/seekingalpha.com\/news\/3942838-sp-500-dow-nasdaq-slump-again-on-ongoing-fed-concerns<\/a><\/a><\/p>\n

4. <\/span>“Stock market news today: Stocks pare gains, finish mixed to start busy week” AOL, 6 Mar. 2023, https:\/\/www.aol.com\/stock-market-news-today-stocks-123642555.html<\/a><\/a><\/p>\n

5. <\/span>“Futures: Will Powell Testimony Threaten Stock Market Rally?” Investor’s Business Daily, 7 Mar. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-will-powell-testimony-threaten-stock-market-rally-apple-tesla-in-focus<\/a><\/a><\/p>\n

6. <\/span>“Dow Jones Fades Ahead Of Powell Testimony; Ferrari Overtakes Tesla As Leader; Apple Pops” Investor’s Business Daily, 6 Mar. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-fades-ahead-of-key-powell-testimony-ferrari-stock-overtakes-tesla-stock-as-leader-tests-entry<\/a><\/a><\/p>\n

7. <\/span>“Stock Index Futures Move Higher As Dovish Fed Comments Boost Hopes Of Fed Pivot” Barchart, 3 Mar. 2023, https:\/\/www.barchart.com\/story\/news\/14739365\/stock-index-futures-move-higher-as-dovish-fed-comments-boost-hopes-of-fed-pivot<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1835,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1836"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1836"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1836\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1835"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}