Market session wraps with Fed decision released; major equities down

The meeting showed that more policymakers are convinced of the possible interest rate hike in the next two years.

There is no immediate change on the current policy, but the new projection says that the interest rate is to increase by the end of 2022 which was supported by seven out of eighteen officials, compared to the same statement in March which was only supported by four. Also, thirteen officials now see a hike before 2023 ends, versus the original seven that agrees to this statement. This information is digested by the traders which caused stocks to pull down, hard.

Another detail weighing on the traders is the economic data released on Tuesday, which showed the producer price increasing on record rate considering year on year changes. The personal consumption expenditure and the core consumer price index also rose in May to a record level for the last 30 years.

Stocks:

– The Dow Jones Industrial Average fell to 34,033.67 with a decrease of 256.66 points or 0.77%.
– NASDAQ Composite Index lower by 33.17 points or 0.24% and ended 14,039.68.
– The S&P 500 Index landed at 4,223.71 after losing 22.88 points or 0.54%.
– Japan’s Nikkei 225 lost by 1.31% or 384.24 points and closed to 28,906.70.
– Hong Kong’s Han Sen stepped up at 28,500.67 points or 0.22% gain.

Bonds:

– U.S. 2 Year Treasury yield decreased by 0.045 basis points or 21.50% and closed at 0.166.
– U.S. 5 Year Treasury yield went down by 0.011 basis points or 1.27% at 0.887.
– U.S. 10 Year Treasury yield lost 0.008 basis points or 0.54% and ended 1.569.

Commodities:

– Gold down to $1,831.30 per ounce after losing $25.10 or 1.35%
– Silver currently at $27.08 per ounce.
– Western Texas Intermediate Crude dropped 0.68% and now at $71.66 per barrel.
– Brent crude at $73.86 per barrel after slipping by 0.71%.

Currency exchange looks like this on Wednesday:

– U.S. Dollar Index up by 0.23% at 91.34.
– Euro up by 0.06% closing 1.19995 vs USD.
– Yen increased by 0.05% at 110.676 against USD.
– British Pound up by 0.06% at 1.3995 versus USD.
– Canadian Dollars lost 0.01% at 1.22734 vs USD.

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