Your current location is:{Current column} >>Text
Stocks Rally On Oil Plunge And Soft PPI Report, Airlines Surge, Bitcoin Trapped
{Current column}783People have watched
IntroductionUS stocks were getting a boost from a trifecta of reasons: economic and political pressure growing f ...
US stocks were getting a boost from a trifecta of reasons: economic and Traffic dealerpolitical pressure growing for a Russian ceasefire, oil prices plunge, and after both a softer-than-expected PPI report and a disappointing Empire survey, supporting the idea that the Fed won’t have to be aggressive with tightening policy over the next few meetings.
The S&P 500 index was getting dangerously close to the lows seen at the initial stock market selloff when Russia invaded Ukraine just over two weeks ago. The S&P 500 looked like it would hold the 4,100 level leading up to the FOMC decision.
The Fed will raise rates by 25 basis points and signal that this is the beginning of a series of hikes. With an uncertain outlook over the medium-term, the Fed will hold off committing any additional beyond 5 hikes for the year. There is no benefit to overcommit on tightening expectations given all the geopolitical risk and inflation uncertainty that is on the table and potential recession risk from abroad.
Equities tentatively pared gains after President Putin told European Council President Michel that Ukraine “is not showing a serious attitude toward finding mutually acceptable solutions.”
Airlines outlook looks rosy
Shares of airline stocks were celebrating the collapse of oil prices and robust domestic demand for travel. Delta (NYSE:DAL) and Virgin (NYSE:SPCE) anticipated little impact from the war in Ukraine with North Atlantic travel. Southwest (NYSE:LUV) was maintaining a profitable forecast for the remaining three quarters, while JetBlue (NASDAQ:JBLU) was noticing a strong demand for UK-US travel.
International travel may struggle given China’s COVID surge and Europe’s economic uncertainty, but the domestic airlines should outperform.
Bitcoin
At time of writing, Bitcoin remained trapped in a tight range despite improving sentiment for risk. The surge in Treasury yields higher over the past week had handcuffed Bitcoin and Wednesday's FOMC decision should open the doors for a massive move. Bitcoin’s ceiling had been the USD 45,000 level and that could be tested if the Fed seems positioned to take a more gradual approach with tightening.
Original Post
Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!Tags:
Related articles
Dollar rebounds from one
{Current column}By Yasin Ebrahim-- The U.S. dollar rebounded from a one-year low as bets on a May rate hike jumped a ...
Read moreOil set to close higher in 2022, a turbulent year marked by tight supplies By Reuters
{Current column}By Florence TanSINGAPORE (Reuters) - Oil prices edged up on Friday and were on track to post a secon ...
Read moreMonographic Technologies Trading Is Safe? Company Abbreviation Monographic Technologies
{Current column}FTI's top 100 foreign exchange brokers can be selected by reference. If they are not within 100, ...
Read more
Popular Articles
- Debt crunch looms for weaker economies with a wall of bond maturities ahead By Reuters
- UK house prices end 2022 on a weaker note after pandemic boom By Reuters
- Tens of thousands view body of former Pope Benedict By Reuters
- Ecosales Trading Is Safe? Company Abbreviation Ecosales
- Fed to skip hike in June, hop into long pause before jump to cuts: Morgan Stanley By
- V7 Markets Trading Is Safe? Company Abbreviation V7 Markets
Latest articles
-
Japan PM Kishida evacuated unhurt after explosion at speech
-
Japan's biggest banks to raise housing loan rates after BOJ's policy tweak By Reuters
-
Russian Federation Codifies Digital Ruble as the Official Currency By CoinEdition
-
Russian drones attack critical infrastructure in and around Kyiv
-
North Korea blasts U.S.
-
Asia shares skid on China woes, yen hits 6