Dow Jones futures were little changed early Thursday, along with S&P 500 futures and Nasdaq futures. The stock market rally boasted strong gains Wednesday, closing at session highs amid big news from China, the Russia-Ukraine war and a hawkish Federal Reserve.
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J.B. Hunt Transport Services (JBHT), Costco Wholesale (COST) and Harmony Biosciences (HRMY) broke out Wednesday, at least intraday, while Rambus (RMBS) flirted with a buy point.
Nvidia stock, while well off highs, made a strong move toward a very aggressive entry.
Fed Rate Hike
The Fed raised interest rates by a quarter point on Wednesday as the central bank seeks to rein in soaring inflation while navigating a slew of economic uncertainties. Policymakers also signaled they will hike rates six more times in 2022, while also planning to reduce the Fed’s massive balance sheet soon.
The Fed policy announcement noted Russia’s Ukraine invasion is “likely to create additional upward pressure on inflation and weigh on economic activity.”
Fed chief Jerome Powell, in his post-meeting news conference, said the central bank plans to raise rates steadily over 2022. But he again stressed that policymakers will be “nimble,” signaling faster or slower action as conditions warrant.
The 10-year Treasury jumped to 2.24%, intraday, the highest since May 2019, but pared gains during Fed chief Powell comments. The 10-year yield settled for a gain of 3 basis points to 2.19%. The two-year yield jumped 7 basis points to 1.93%. Meanwhile, the 30-year Treasury yield fell 6 basis points to 2.45%.
The flattening yield curve signals concerns about economic growth going forward. Fed chief Powell said the risk of recession over the next year “is not particularly elevated.”
Russia’s Ukraine Invasion
President Volodymyr Zelenskyy addressed the U.S. Congress virtually on Wednesday, urging more support. President Joe Biden signed into law $13.6 billion in military and humanitarian aid for Ukraine, with the U.S. and allies reportedly sending more advanced anti-aircraft systems.
Earlier, Zelenskyy described Russia-Ukraine peace talks as “more realistic.” Russia signaled a neutral Ukraine with an army could be acceptable.
But Russia President Vladimir Putin gave a televised address Wednesday where he repeated many of his truth-challenged claims about Russia’s “special operation” in Ukraine. He also called for “self-purification,” which could be a signal for purges at home.
Biden, speaking on Russia’s Ukraine invasion, said Putin is a “war criminal.”
Amid heavy Ukraine invasion losses, Russia is pulling more troops and equipment from various places, including from the Far East and occupied parts of Georgia.
China Stocks Soar On Bullish Comments
On March 16, Beijing signaled support for Chinese companies listed in the U.S., suggesting that it’s working with U.S. regulators to address auditing concerns, easing delisting fears. It also announced that a crackdown on internet giants will end “as soon as possible.” U.S.-listed Chinese stocks surged Wednesday, but only recouped part of the massive losses in the past couple of weeks, let alone the long slides over the past year.
The KraneShares CSI China Internet ETF (KWEB), which holds many of the big internets such as Alibaba (BABA), skyrocketed 39% to 30.92. But KWEB is still down 7.6% so far this month and far below its Feb. 17, 2021, peak of 104.94.
China lockdowns on Shenzhen and elsewhere remain a major concern.
Meanwhile, South Korea reported 621,328 new coronavirus cases, more than 1% of the total population in a single day. Vietnam infections also are soaring.
Nvidia (NVDA) and JBHT stock are on IBD Leaderboard. J.B. Hunt and COST stock are on SwingTrader and the IBD 50. J.B. Hunt also was Wednesday’s IBD Stock Of The Day.
The video embedded in this article covered Wednesday’s bullish market action and highlighted HRMY stock, Nvidia and J.B. Hunt.
Dow Jones Futures Today
Dow Jones futures fell 0.1% vs. fair value. S&P 500 futures…
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