S&P 500 moved back above the 4000 level ahead of FOMC Minutes. The yield of 10-year Treasuries declined towards the 3.90% level, which was bullish for stocks.
Traders are waiting for the details of the last Fed meeting. The release of FOMC Minutes will have a significant impact on market sentiment, so traders should be prepared for volatility.
The market will be focused on whether the Fed is ready to be more hawkish. St. Louis Federal Reserve President James Bullard has recently said that it was necessary to get inflation on to a sustainable path down towards the 2% target. If FOMC Minutes show that other Fed members share his views about peak interest rates at 5.25% -5.50%, S&P 500 may test new lows.
Meanwhile, most market segments are moving higher in today’s trading session, although energy stocks have found themselves under pressure amid a pullback in the oil markets.
NASDAQ
NASDAQ failed to settle below the 12,000 level and rebounded towards 12,100 as lower Treasury yields provided some support to the yield-sensitive tech stocks.
Intel is down by 1.5% after the company cut its dividend to $0.125 per share. The stock is trading near multi-year lows as traders remain skeptical about the near-term performance of the company. Palo Alto Networks gained 12% after the company beat analyst estimates and presented strong guidance.
Traders should note that NASDAQ may be especially sensitive to the content of FOMC Minutes.
Dow Jones
Dow Jones settled near the 33,200 level as traders waited for FOMC Minutes. Walmart was the biggest loser in the index as traders remained focused on the recent earnings report. Interestingly, Home Depot, which has also released its earnings report on Tuesday, managed to gain some upside momentum and gained 1.5%.
For a look at all of today’s economic events, check out our economic calendar.