Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
Stock futures decline Thursday morning after the Federal Reserve decided not to raise interest rates at its latest meeting but indicated that two more rate hikes may occur later this year.
During a press conference following the meeting, Fed Chair Jerome Powell stated that the Federal Open Market Committee would consider the cumulative tightening of monetary policy in the six weeks leading up to the next meeting. He also mentioned that a decision regarding July’s policy move has not yet been made. The initial market shock subsided quickly, with major averages recovering from earlier losses before the end of Powell’s press conference.
The Fed’s decision indicates a shift from an escalation stage to a calibration stage in the rate cycle. However, it is evident that the Fed is prepared to raise rates further in the future if necessary, albeit in smaller increments based on data indicating a need for a more restrictive rate stance. Additional economic data releases on Thursday, including weekly jobless claims, retail sales for May, the Philadelphia Fed’s June manufacturing survey, and the Fed’s May industrial production and capacity utilization numbers, will provide further insights into the labor market’s strength and consumer spending.
Thursday Economic Events:
Initial Jobless Claims 8:30am ET – High Volatility Expected
Philly Fed Mfg Index 8:30am ET – High Volatility Expected
Retail Sales 8:30am ET – High Volatility Expected
Empire State Mfg Index 8:30am ET
Import and Export Prices 8:30am ET
Industrial Production 9:15am ET
Business Inventories 10:00am ET
EIA Natural Gas Report 10:30am ET
Fed Speaker Scheduled:
No Speakers Scheduled
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