Friends
News that a Boeing 737 went down in China overnight sent that Dow component lower at the open and the Dow Jones Industrial Average itself with it. The S&P and Nasdaq were holding their own until midday when Fed Chair Powell made it clear that the Fed could raise rates by a half a point at any time if the committee feels that it is necessary. I’m not sure how this isn’t known (I think they should have gone a half point last week), but it gave market participants a reason to sell stocks after last week’s robust rally. The takeaway is that the market is still on fragile ground at the moment and almost any unflattering headline gives cause to sell. The bond market sure took the opportunity to sell as the 10-year Treasury note move up to over 2.30% during the trading session (remember when bond prices fall the yields rise).
By the close, the Dow Jones Industrial Average was down 201 points to finish the day at 34,552. The S&P 500 was down 1 point to close at 4,461. The Nasdaq Composite Index was down 55 points to close at 13,838. Gold was up $8 to trade at $1,937 per ounce, while oil was up $7.73 to trade at $112.43 per barrel WTI.
One pattern the bulls can hang their hat on lately, is the action in the last hour of the trading session. At its worst earlier this year, the last hour was often the worst of the day for the bulls with stocks tumbling into the close. In the last couple of weeks, the last hour of trading has been a little kinder to the bulls with deficits being erased and up moves being accelerated. Just something different that could mark a slight change in the market’s tone.
Have a nice evening everyone.
