Stocks open higher as investors await Fed decision

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Yahoo Finance’s Julie Hyman discusses how stocks are trading in anticipation of the Fed’s decision on Wednesday.

Video Transcript

Let’s get over to Julia Hyman, who’s at the Wi-Fi interactive.

JULIA HYMAN: Yes indeed. Just want to point out some of the moves we’re seeing, not just today, but that we’ve been seeing in the run up to the Fed here. And even though we’ve got the Dow bouncing today, of course, stocks bouncing today are in the wake of what we have seen, the downward movement over the past week. So here’s the five-day chart of the Dow. And of course, we had the downward movement on Friday because of the CPI, and then again on Monday, when we had the signal in the “Wall Street Journal” that we were going to see a 75 basis point increase.

So again, we’ve been talking about what is already priced into the market. We don’t entirely know because we don’t know what Jay Powell is going to say today. But nonetheless, we have already had some decreases, of course, coming into today’s session.

We’ve been watching the 10 year yield as well, which had been moving up sharply. Today, losing 9 basis points, at 3.39%. But still at elevated levels here as people try to price in what the Fed is going to do.

And as the Fed acts today, as we talked about earlier, the ECB had an emergency meeting today. Didn’t really change a whole heck of a lot. They have signaled that they are going to be raising rates, but are not yet doing so. And we have been seeing some weakness in the euro before. A little bit of rebound today.

I also wanted to point out what we’re seeing in crude oil futures, even as we had the International Energy Agency saying that in 2023, demand is going to continue to outpace supply. We have a little bit of weakness in oil price today. But still $118 a barrel here, guys. So we are still obviously seeing very elevated gasoline prices as a result in the United States. So that’s just a little bit of a cross asset check for you. Bitcoin holding above 21,000 for the moment, guys.

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