U.S. stock futures traded sideways, as the markets reacting to the Fed signaling early rate hikes. The Dow Jones Industrial Average was up, while the tech-focused Nasdaq dropped.
Most members of the Fed Open Market Committee see the Fed raising rates in early 2022. With the release of the FOMC minutes, markets have upped their rate hike expectations.
That’s why markets are dumping risk assets, including tech stocks and crypto. They’re trading out growth opportunities for companies that perform well when interest rates are higher.
Meanwhile, despite record Omicron cases, most investors expect the economy to continue its recovery.
| Level | Chg. | Chg. % | |
| DOW Futures | 36,391.00 | 61 | 0.17% |
| S&P 500 Futures | 4,694.25 | -5 | -0.11% |
| Nasdaq Futures | 15,702.75 | -88.5 | -0.56% |
U.S. Dollar and Treasuries
The yield on the 10-year Treasury rose four basis points after the release of the Fed minutes. The dollar remained stable against a basket of major currencies.
| Price | Chg. | Chg. % | |
| U.S. Dollar Index (DXY): | 96.14 | -0.03 | -0.03% |
| Yield | Change | Previous close | |
| U.S. 1 Year Treasury Bill | 0.412% | 0.02 | 0.393% |
| U.S. 5 Year Treasury Note | 1.474% | 0.043 | 1.431% |
| U.S. 10 Year Treasury Note | 1.748% | 0.042 | 1.706% |
Stocks To Watch
Tesla is losing steam, dropping back below $1,100, after falling 5.35% on Wednesday. The EV company fell with other tech stocks, as investors are dumping risk assets. Apple, as well as Jack Dorsey’s Block also dropped in the reshuffling.
On the other hand, oil stocks, including Exxon Mobil, surged with a spike in oil prices. Travel stocks jumped on recovery bets. Carnival Corp dumped almost 1%.
Shares of Western Union dropped after BofA Securities downgrade. The investment bank downgraded the company to “underperform”.
| Symbol | Company Name | Price | Chg. % | Volume |
| AAPL | Apple Inc. | $173.25 | -0.95% | 453.09K |
| TSLA | Tesla Inc. | $1,070.99 | -1.57% | 329.42K |
| CCL | Carnival Corp. | $21.36 | 0.90% | 173.14K |
| SQ | Block Inc. | $142.20 | -0.90% | 50.95K |
| XOM | Exxon Mobil Corp. | $67.61 | 1.29% | 46.36K |
| WU | Western Union Co. | $17.70 | -4.07% | 41.28K |
Commodities To Watch
Oil surged on recovery bets, as well as the unrest in Kazakhstan, which could impact supply. Gold dipped below $1,800 on rate hike expectations.
| Resource | Price | Chg. % |
| WTI Crude Oil | $78.83 | 1.26% |
| Brent Crude Oil | $81.71 | 1.13% |
| Natural Gas | $3.85 | -0.95% |
| Gold | $1,798.80 | -1.44% |
| Silver | $22.27 | -3.88% |
| Copper | $4.35 | -1.35% |
Crypto
Crypto prices collapsed after the release of the Fed’s minutes, with Bitcoin dropping below $43,000. The global crypto market cap is $2.02T, an 8.78% decrease over the last day. Bitcoin’s dominance is currently 39.97%, an increase of 0.66% over the same period.
| Currency | Symbol | Price | Chg. % | Market Cap. |
| Bitcoin | BTC | $42,847.13 | -7.32% | 810.73b |
| Etherium | ETH | $3,342.91 | -11.87% | 396.70b |
| Binance coin | BNB | $461.93 | -9.63% | 69.45b |
| Solana | SOL | $147.24 | -12.51% | 45.56b |
| Cardano | ADA | $ 1.203 | -9.31% | 37.43b |
