Today’s Stock Market Indicators
Stocks prices headed downward today after Fed Chair Jerome Powell’s announcement that two rate hikes might happen by 2023. It seems the markets are a little touchy, however the rate hikes make no sense if the Fed is hitting its inflation targets and doesn’t expect runaway growth.
By end of trading yesterday, the Dow Jones was down 267 points and today again the DOW dropped by 242 points. while the S&P fell 26 points in the last 2 days. It’s likely a very short lived effect on what will become a hot stock market for the next 6 months, and predictably for 2022 as well.
Powell also predicted inflation this year might reach 3.4% but will fall back down near the 2% target the Fed is targeting. May’s CPI was 5% which is running too high for some, but if it is transitory, no statement of rising rates was needed. Powell spoke in a stuttered fashion throughout the speech, which suggests doubts and uncertainty, or that political pressure is being applied.
Aberdeen Standard Investments deputy chief economist James McCann commented that “This is not what the market expected. The Fed is now signaling that rates will need to rise sooner and faster, with their forecast suggesting two hikes in 2023.”
The Dow Jones, rose last week along with the S&P, NASDAQ and Russell 2000 which keep touching all time highs. All indexes plunged on May 11th and 18th as inflation, jobless claims, and Fed rumor mongering via the media took the spotlight. By week’s end the indexes had recovered.
A Bit of a Bubble for Bitcoin
Bitcoin and other Cryptocurrencies have been the most volatility investment. Bitcoin dropped to $38,000 today but has been strong during the last 4 days. China is reinforcing its ban on cryptocurrency for sales transactions. That’s not good news for the crypto crowd, however China is likely pushing for their own cryptocurrency which they hope might become the world standard (with a backdoor perhaps?)
ARK investment Funds Cathie Wood is still sticking her neck out with a $500,000 forecast for Bitcoin. She’s never really explained the macroeconomic, banking, and transactional underpinning’s of Bitcoin rise to dominance. Given the volatility, not many other investors feel as confident of its long term price growth.
How do you feel about Bitcoin? Are there alternatives? Ethereum has plunged too.
According to MarketWatch, stocks fell Tuesday against as “upbeat corporate results and expectations for a booming economic expansion in the wake of the COVID-19 pandemic competed with worries about lofty valuations and signs of accelerating inflationary pressures.” And the correction continues. This is quieter than expected, so is the real “correction event” or will all of this blow away, given how strong earnings reports are?
Volatility Up, with Downturns
Everyday, it’s some temporary struggle of indicators. There’s lots of noise happening, however you really should recalibrate every so often to ensure you’re investing smartly. Is the daily volatility concerning? Okay, then digging in deeper in to the Dow Jones, S&P, Russell and NASDAQ is important.
Top stock performers today:
Live Today Financial Markets
Get up to speed on the Dow Jones forecast, S&P 500 Forecast, Russell 2000 and NASDAQ indexes. Are the FAANGS returning: Google stock price, Facebook price, Amazon price, and Apple price reports. Where will next weeks stock market forecast and the 6 month forecast take us? Get up to date on the stock market, oil markets, and cryptocurrency market.
The stock market changes daily, weekly and seasonally. Let’s see what the real time data says, and then look deeper at what that really means. If you’re real time day trader/gambler, your strategy success depends on price trends which can be sudden macroeconomic reports, political speeches, Fed announcements, and other news.
Keep in mind that many of the stock market events today are politically motivated attempts to manipulate public perception. It’s shallow propaganda and this is where inexperienced investors lose their shirts. Be careful accepting news site reports. They live on hype. Dig deeper and know what you’re doing with your equities investments.
Top Stocks Today Live:
Real Time or Enduring Trends?
Investors want real time up to date price quotes on stocks, but what’s more important are price trends. A few cents here or there aren’t going to make much difference in your investment value and strength for the long term.
Day traders look to events happening this week that will send the stock market up or down. It’s an approach that may work well, and if it didn’t they wouldn’t be day traders for long would they? Some watch stock price reports during the day while others watch for key factors that will push the price up or down in the next week.
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