Everything looked so good for the market yesterday...when it opened. But then stocks gave up the ghost, with even the mighty Nvidia (NVDA) only managing to close with a 0.1% gain (after soaring more than 10% after-hours the day before).
We’re seeing an early bounce ahead of key Federal Reserve news later this morning, with both stocks and crude oil higher. Gold, silver, Treasuries, and the dollar are mostly flat.
On the news front...
It was fun while it lasted in stocks after the Nvidia earnings, but a massive “Sell the news” reaction in markets left the major averages down between 1% and 2% across the board. Today it’s really all about the Fed and what Chairman Jay Powell says at the Jackson Hole Symposium in his speech at 10:05 am Eastern.
Federal Funds Rate Target (Upper Limit)
The Fed hiked interest rates to a range of 5.25% to 5.5% at its July meeting. Investors will be watching today’s speech closely for hints about what the Fed will do this fall. The next policy meeting is scheduled for Sept. 19-20, with two more before the end of the year on Oct. 31-Nov. 1 and Dec. 12-13.
Rising mortgage rates are already posing a significant threat to the housing market. Now, soaring insurance costs are deterring buyers in many markets. That includes both private homeowners insurance and flood insurance, which is mostly provided by the federal government. Florida homeowners premiums, for instance, have roughly tripled in the last five years to $6,000, according to the Insurance Information Institute.
Finally, former President and current Republican candidate Donald Trump surrendered himself at the Fulton County Jail in Atlanta late yesterday for booking on 13 felony charges related to the 2020 election. He became the first president in history to have his own mug shot. Upon leaving town, Trump called the case a “travesty of justice.”
