Dow Jones futures saw a slight decline in morning action as the highly anticipated Federal Reserve meeting kicked off on Tuesday. The market was also affected by the announcement of a stock offering from Super Micro Computer (SMCI), a leader in artificial intelligence.
In the pre-market trading, Dow Jones futures dropped 0.1% and S&P 500 futures lost 0.3%. Nasdaq 100 futures, which are heaviliy focused on technology stocks, declined 0.6% before the opening bell.
The stock market also saw a decline in several exchange-traded funds (ETFs). The Invesco QQQ Trust ETF (QQQ), which tracks the Nasdaq 100, fell 0.6%. Meanwhile, the SPDR S&P 500 ETF (SPY) decreased by 0.3%.
The 10-year Treasury yield also saw a slight decrease to 4.31%. Additionally, oil prices experienced a minor dip after gaining on Monday, with West Texas Intermediate futures trading around $82 a barrel.
The major highlight of the day was Super Micro’s stock offering, which caused a significant drop of nearly 11% in the company’s stock price. Super Micro plans to sell 2 million shares, and this announcement added to the losses incurred by the company on Monday when it joined the S&P 500.
As the Federal Reserve’s two-day policy meeting began on Tuesday, all eyes were on Fed Chairman Jerome Powell. Analysts anticipated that Powell may hint at a near-term rate cut, which would support the possibility of a rate cut in June. This could come as a surprise to those who believe that higher inflation will keep rates stable. However, Fed projections for 2024 and 2025 may show one fewer rate cut than what was projected in December.
Investors also received housing data, with the early release of the Commerce Department’s housing starts and permits for February. Housing starts rose, surpassing estimates, while permits also climbed higher than expected.
In terms of earnings movers, StoneCo (STNE) saw a significant tumble of more than 9%, while Tencent Music (TME) experienced a modest 1.1% gain in pre-market trades.
On Monday, the Dow Jones Industrial Average and the S&P 500 both saw an increase of 0.2% and 0.6% respectively. The tech-heavy Nasdaq composite registered an even higher gain of 0.8%.
Now, let’s address some frequently asked questions related to the market:
Frequently Asked Questions
What is the Federal Reserve?
The Federal Reserve, often referred to as the “Fed,” is the central banking system of the United States. It is responsible for conducting monetary policy, supervising and regulating banks, and maintaining financial stability in the country.
What does a stock offering mean?
A stock offering, also known as a secondary offering, is when a company decides to issue additional shares of stock to the public. This is a way for a company to raise capital, often to fund expansion plans or pay off debt.
What are exchange-traded funds (ETFs)?
Exchange-traded funds, or ETFs, are investment funds that trade on stock exchanges, similar to individual stocks. They are designed to track the performance of a specific index, sector, commodity, or asset class. ETFs offer diversification and flexibility to investors, as they can be bought and sold throughout the trading day.
What are housing starts and permits?
Housing starts refer to the number of new residential construction projects that have begun during a specific period. Permits, on the other hand, indicate the number of new construction projects that have been authorized but may not have started yet. These indicators are used to gauge the health and activity of the housing market.
As the market continues to evolve, it is important for investors to stay informed and adjust to changing market conditions. Consider reading IBD’s The Big Picture column and utilizing their new exposure levels for guidance.
Sources:
– Federal Reserve: https://www.federalreserve.gov/
– Investopedia: https://www.investopedia.com/terms/e/etf.asp
Dow Jones futures saw a slight decline in morning action as the highly anticipated Federal Reserve meeting kicked off on Tuesday. The market was also affected by the announcement of a stock offering from Super Micro Computer (SMCI), a leader in artificial intelligence.
In the pre-market trading, Dow Jones futures dropped 0.1% and S&P 500 futures lost 0.3%. Nasdaq 100 futures, which are heavily focused on technology stocks, declined 0.6% before the opening bell.
The stock market also saw a decline in several exchange-traded funds (ETFs). The Invesco QQQ Trust ETF (QQQ), which tracks the Nasdaq 100, fell 0.6%. Meanwhile, the SPDR S&P 500 ETF (SPY) decreased by 0.3%.
The 10-year Treasury yield also saw a slight decrease to 4.31%. Additionally, oil prices experienced a minor dip after gaining on Monday, with West Texas Intermediate futures trading around $82 a barrel.
The major highlight of the day was Super Micro’s stock offering, which caused a significant drop of nearly 11% in the company’s stock price. Super Micro plans to sell 2 million shares, and this announcement added to the losses incurred by the company on Monday when it joined the S&P 500.
As the Federal Reserve’s two-day policy meeting began on Tuesday, all eyes were on Fed Chairman Jerome Powell. Analysts anticipated that Powell may hint at a near-term rate cut, which would support the possibility of a rate cut in June. This could come as a surprise to those who believe that higher inflation will keep rates stable. However, Fed projections for 2024 and 2025 may show one fewer rate cut than what was projected in December.
Investors also received housing data, with the early release of the Commerce Department’s housing starts and permits for February. Housing starts rose, surpassing estimates, while permits also climbed higher than expected.
In terms of earnings movers, StoneCo (STNE) saw a significant tumble of more than 9%, while Tencent Music (TME) experienced a modest 1.1% gain in pre-market trades.
On Monday, the Dow Jones Industrial Average and the S&P 500 both saw an increase of 0.2% and 0.6% respectively. The tech-heavy Nasdaq composite registered an even higher gain of 0.8%.
Frequently Asked Questions
What is the Federal Reserve?
The Federal Reserve, often referred to as the “Fed,” is the central banking system of the United States. It is responsible for conducting monetary policy, supervising and regulating banks, and maintaining financial stability in the country.
What does a stock offering mean?
A stock offering, also known as a secondary offering, is when a company decides to issue additional shares of stock to the public. This is a way for a company to raise capital, often to fund expansion plans or pay off debt.
What are exchange-traded funds (ETFs)?
Exchange-traded funds, or ETFs, are investment funds that trade on stock exchanges, similar to individual stocks. They are designed to track the performance of a specific index, sector, commodity, or asset class. ETFs offer diversification and flexibility to investors, as they can be bought and sold throughout the trading day.
What are housing starts and permits?
Housing starts refer to the number of new residential construction projects that have begun during a specific period. Permits, on the other hand, indicate the number of new construction projects that have been authorized but may not have started yet. These indicators are used to gauge the health and activity of the housing market.
As the market continues to evolve, it is important for investors to stay informed and adjust to changing market conditions. Consider reading IBD’s The Big Picture column and utilizing their new exposure levels for guidance.
Sources:
– Federal Reserve
– Investopedia
The source of the article is from the blog dk1250.com