Marketbites: Keep Hiking
Updated: Sep 27, 2022
MARKET PERFORMANCE:
Portfolio Manager Commentary:
Following the Fed’s 75 basis points rate hike, indices did not seem to know how to react until they fell off a cliff to end the day. The S&P 500 closed down 1.71%, the Nasdaq lost 1.79%, and the Dow fell 1.70%.
Investors expect additional large rate hikes at upcoming Fed meetings through the end of this year and into the beginning of next year. Shorter-term treasury yields rose again Wednesday with the 2-year reaching up to 4.1%. Consumer discretionary, communication services, and materials led the market decline. The euro dropped yesterday as the war in Ukraine continues.
Chart of the Day:
The price of lithium has been surging due to high demand for electric vehicles, especially in China. Lithium is an outlier in the commodity markets, that have broadly retreated in recent months.
Source: WSJ
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