Powell Closes The F------ Door On Early Rate Cut Hopes: Stocks, Bonds Tumble While Dollar Rallies
Portfolio Pulse from Piero Cingari
Federal Reserve Chair Jerome Powell's remarks at an IMF conference were perceived as hawkish by market participants, leading to a shift in expectations for the first Federal Reserve rate cut from May to June 2024. Powell emphasized the need for continued efforts to bring inflation back to its desired level and questioned the conventional wisdom that monetary policy should always overlook supply shocks. Following his remarks, the dollar rallied, the S&P 500 Index declined, and Treasury yields spiked.
November 09, 2023 | 8:10 pm
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POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (NYSE:UUP) was 0.4% higher following Powell's remarks.
Powell's hawkish remarks led to a rally in the dollar, which directly impacts the UUP ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (NYSE:SPY) fell 0.8% following Powell's hawkish remarks.
Powell's hawkish remarks led to a shift in market expectations, causing a decline in the S&P 500 Index which directly impacts the SPY ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) tumbled 2.4% following Powell's remarks.
Powell's hawkish remarks led to a spike in Treasury yields, causing investors to flee bonds which directly impacts the TLT ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100