Indexes Close Lower on Heels of Fed Rate Hike

Oil extended yesterday's steep losses

Managing Editor
May 3, 2023 at 4:27 PM
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As anticipated, the U.S. Federal Reserve hiked interest rates for the 10th time in a row. Lifting 25 basis points, Fed Chair Jerome Powell hinted at an upcoming pause on such hikes, but did say slow inflation progress will likely contribute in a delay for rate cuts. In response the major indexes closed lower, with the Dow logging a second-straight triple-digit loss.

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

  • Overlooked Fed storylines to watch.
  • Casino stock flashing a pre-earnings bull signal.
  • Plus, the Starbucks stock slide; pharma stock's 2-year peak; and what small-cap underperformance looks like.

Closing Indexes Summary May 3

NYSE and Nasdaq Stats May 3

 Things to Know Today 

  1. Morgan Stanley (MS) is the target of a lawsuit due to alleged racial bias toward a contracted recruiter. (Bloomberg)
  2. With it's fiscal second-quarter earnings due out after-the-close tomorrow, followers of Apple (AAPL) are expecting a $90 billion buyback and dividend announcement. (CNBC)
  3. Behind the Starbucks stock slide.
  4. Pharma giant enjoying multi-year highs.
  5. What small-cap underperformance could mean for stocks.

Coroprate Earnings May 3

Unusual Options Activity May 3Oil Extends Steep Losses

Oil extended yesterday's drop, today marking its lowest close in over six weeks. Recession and demand fears continued to circle the commodity. June-dated crude dropped $3.06, or 4.3%, to close at $68.60 per barrel.

Before the Fed's announcement, gold futures settled Wednesday higher, though in after market trading shares seem to be shifting. The June-dated commodity added $13.70 or 0.7%, to close at $2,037 an ounce.


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