Stocks Fall as Fed Policy Becomes Clear

The Fed plans to shrink its balance sheet by $95 billion a month

Assistant Editor
Apr 6, 2022 at 4:26 PM
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The Dow, S&P 500, and Nasdaq all logged their second-straight day of sharp losses today. Investors unpacked the anxiously-awaited Federal Open Market Committee (FOMC) minutes, in which the U.S. Federal Reserve laid out its plan to shrink its balance sheet by $95 billion a month. Though no final decisions have been made, the meeting indicated an agreement amongst officials. 

Bond yields climbed after the report, and the previously inverted 10-year Treasury yield jumped back above the 2-year Treasury yield. The tech-heavy Nasdaq led the losses today with an 315-point drop, while Wall Street's "fear gauge," the Cboe Volatility Index (VIX) logged its highest close in nearly two weeks. 

Continue reading for more on today's market, including:

  • Bank stock selloff weighs on JPM before earnings
  • Analyst casts doubt on Spirit Airlines' latest buyout offer
  • Plus, drug stock could move higher; more on TLRY's surge; and RIVN's production update.

The Dow Jones Average (DJI - 34,496.51) fell 144.7 points, or 0.4% for the day. UnitedHealth Group (UNH) led the gainers with a 2.7% rise, while Salesforce.com (CRM) dropped to the bottom of the index with a 4.4% loss. 

The S&P 500 Index (SPX - 4,481.15) lost 44 points, or 1%, for the day, while the Nasdaq Composite (IXIC - 13,888.82) shed 315.4 points, or 2.2% in today's session.

Lastly, the Cboe Market Volatility Index (VIX - 22.10) added 1.1 points, or 5.1% for the day.

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5 Things To Know Today

  1. One of the many shortages due to the war in Ukraine, prices for fertilizers are skyrocketing, which could have an impact on food supplies. (CNBC)
  2. Oil executives defended themselves to the U.S. Congress today, as lawmakers question why prices remain elevated. (Reuters)
  3. Now looks like a good time to weigh in on BMY with calls
  4. Options traders target this soaring cannabis stock. 
  5. Rivian Automotive stock succumbs to sector slump

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Oil Settles at 3-Week Low

Oil prices fell below the $100 mark and settled at their lowest levels in three weeks, after news that the International Energy Agency (IEA) will release 120 million barrels from its oil reserves. May-dated West Texas Intermediate (WTI) fell $5.73, or 5.6%, to settle at $96.23 a barrel 

Gold prices fell today, but gained in electronic trading following the release of the Fed minutes. June-dated gold shed $4.40, or 0.2%, to $1,923.10 an ounce. 

 




 
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