July 7, 2022

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Dow Jones Futures: Federal Reserve Fears Continue To Strain Market Rally; Tesla, Nvidia Make Key Moves

2 min read

Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market rally suffered serious losses Wednesday, with hawkish Federal Reserve comments sinking techs and lifting Treasury yields for a second straight session.


Arista Networks (ANET), Nvidia (NVDA) and Tesla stock were notable losers on Wednesday, but with different implications for their respective charts.

Apple (AAPL) and Fortinet (FTNT) fell modestly, rebounding from some key support. Apple stock now has a more convincing handle, while FTNT stock has a brand-new handle.

Finally, Extra Space Storage (EXR) broke out from a proper base, as property REITs are quietly doing well.

ANET stock, Nvidia and Tesla (TSLA) are on IBD Leaderboard. Fortinet stock is on IBD Long-Term Leaders. Nvidia, Tesla, Arista Networks and EXR stock are on the IBD 50.

Fed Meeting Minutes

At 2 p.m. ET, the central bank released Fed minutes from the March policy meeting. Participants agreed on reducing the balance sheet, starting as early as May. There was a general agreement to cut the Fed’s asset stockpile by $95 billion per month as bonds mature. That includes $60 billion in Treasuries and $35 billion in mortgage-backed securities. The Fed could phase in those caps over three months.

“Many” Fed officials signaled support for a 50-basis point hike at one or more upcoming meetings. Several favored a half-point move in March, but went along with a quarter-point Fed rate hike due to Russia’s Ukraine invasion, according to the minutes.

That comes a day after Fed Gov. Lael Brainard said she supports a “rapid” balance sheet reduction to combat inflation. The comments by a previously dovish policymaker, on top of expectations of multiple 50-basis point Fed rate hikes at upcoming meetings, sent Treasury yields soaring and techs tumbling.

Stocks kept falling Wednesday, with bond yields rising, hitting session lows after the Fed meeting minutes release.

Dow Jones Futures Today

Dow Jones…

2022-04-06 22:12:43

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