Stocks Sell Off On FOMC Minutes: Traders Anticipate June Fed Pause, July's Hike Uncertain
Portfolio Pulse from Piero Cingari
Stocks resumed their downtrend after the release of the May FOMC meeting minutes, with increased uncertainty about future interest rates. The S&P 500 index fell 0.8% and the U.S. Dollar index rose 0.4%. Traders anticipate a June Fed pause and are uncertain about a July rate hike.
May 24, 2023 | 8:15 pm
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POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) recovered significantly after the FOMC minutes, with the U.S. Dollar index rising 0.4%.
The FOMC minutes led to increased uncertainty about future interest rates, which in turn caused the U.S. Dollar index to rise 0.4%. This directly impacted the Invesco DB USD Index Bullish Fund ETF (UUP), which closely tracks the U.S. Dollar index, resulting in a recovery for the ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) fell 0.8% after the release of the FOMC minutes, reflecting increased uncertainty about future interest rates.
The FOMC minutes revealed increased uncertainty about future interest rates, which led to a risk-off session in markets. This directly impacted the S&P 500 index, which is closely tracked by the SPY ETF, causing it to fall 0.8%.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100