The shares sold on Wednesday after the report of the Federal Reserve’s July meeting was released.
Dow Jones Industrial Average
lost 383 points, or 1.1%, while the
fell 1.1%. the
decreased by 0.9%. All three finished near their lows of the day.
The assessment comes as the economy has quickly recovered and reflects that the Fed is now focusing on when and how quickly to withdraw support from the economy.
The sale was large. About 83% of S&P 500 stocks fell that day, according to FactSet. This momentum often reflects concerns about the performance of the market without the Fed to back it up.
Now it’s just a matter of when the tapering will start. It will be “September or December,” said Dave Wagner, portfolio manager and analyst at Aptus Capital Advisors. “Everyone’s focusing on Jackson Hole in my opinion,” he continued, referring to the central bankers conclave taking place later this month in Jackson Hole, Wyo.
Oddly enough, the bond market didn’t react much, with the 10-year Treasury yield closing at 1.27%, where it hovered for most of the day. The 2-year yield, which often rises when market participants see the Fed hike short-term interest rates earlier, ended at 0.21%, lower than the 0.22% it hit in the morning .
“I don’t think we’ve learned anything new,” said Tom Graff, head of fixed income at Brown Advisory. Graff added that the consensus for a hike in short-term interest rates in 2022 or 2023 has not changed.
A weak market, however, was unable to keep some stocks down. For some, it was income.
(ticker: LOW) the stock rose 9.6% after posting profit of $ 4.25 per share, beating estimates of $ 4.01 per share, on sales of $ 27.6 billion, above expectations of $ 26.9 billion. TJX (
) The stock rose 6% after reporting earnings of 64 cents per share, beating estimates of 59 cents per share, on sales of $ 12.1 billion, above expectations of $ 11 billion .
Others have been bolstered by analyst upgrades, with
(VIAC) increased 3.7% after being upgraded to Overweight Equal Weight at Wells Fargo, and
The stock (BB) gained 4.2% after being upgraded to Hold from Sell at Canaccord Genuity.
Share (TLRY) rose 1.5% after the company bought senior covered convertible bonds in a marijuana company
Notes would convert to equity if cannabis were legalized in the United States
Write to Jacob Sonenshine at [email protected]