Thursday, July 14, 2022

US Market Wrap 07/14/2022

- Stocks pared losses as comments from Federal Reserve officials provided some solace to investors concerned that a faster pace of rate hikes might plunge the country into recession.

- The S&P 500 almost reversed a 2% drop after Fed's Waller and Fed's James Bullard said they would support a 75-basis-point rise in July following a strong inflation print. The tech-heavy NASDAQ 100 rose on increases in behemoths such as Apple and Intel

- Treasury 2 Yr yields fell as traders switched their bets away from the Fed raising interest rates by a full percentage point this month. Waller believes that markets got a little ahead of themselves in betting on such a large move. 

- On Thursday, investors received a reality check from the corporate side, with JPMorgan temporarily halting buybacks due to earnings falling short of projections, and Morgan Stanley reporting a drop in investment-banking revenues. Despite this, the CEOs of both banks indicated they are not directing their companies to seek shelter, despite the fact that global events are weighing on the economy.