The Dow dropped over 500 points lower
As expected, the Federal Reserve raised interest rates by another 75 basis points, while also indicating future rate hikes as the central bank stays aggressive to fight inflation. The market saw quite a bit of volatility before and after the announcement, with stocks plummeting in the last hour of trading. The Dow finished down 522 points, after earlier rising 314 points at its session peak, while the S&P 500 and Nasdaq dropped into the red as well. Meanwhile, the 2-year Treasury yield jumped above 4% for the first time since 2007.
Continue reading for more on today's market, including:
- 5 strategies for options bulls to consider.
- Options traders prepare for Carnival's earnings call.
- Plus, behind SFIX's results miss; EL receives an upgrade; and GIS hits record high.
The Dow Jones Average (DJI - 30,183.78) fell 522.5 points, or 1.7% for the day. Walmart (WMT) was the only winner with a 0.9% rise, while Caterpillar (CAT) landed at the bottom of the list with a 3.4% drop.
The S&P 500 Index (SPX - 3,789.93) dropped 66 points, or 1.7% for the day, while the Nasdaq Composite (IXIC - 11,220.19) shed 204 points, or 1.8%.
Lastly, the Cboe Volatility Index (VIX - 27.99) rose 0.8 point, or 3.1%.
5 Things to Know Today
- After recent challenges, Facebook parent Meta Platforms (META) is reportedly looking to cut costs by 10% over the next few months. (CNBC)
- The International Monetary Fund (IMF) is planning an in-person trip to Ukraine, as the country calls for more financial support amid the costly and devastating conflict with Russia. (MarketWatch)
- Stitch Fix stock hit with bear notes after results.
- Analyst sees upside for cosmetics concern.
- General Mills stock surged to record highs after earnings.
Gold Climbs From Lows
Oil prices moved lower for the second day, following the Fed's interest rate decision. November-dated West Texas Intermediate (WTI) crude, the new front-month contract, fell $1, or 1.2%, to settle at $82.94 barrel.
Gold futures climbed today, after last session hitting their lowest level since April 2020. December-dated gold added $4.60, or 0.3%, to $1,675.70 an ounce.