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  • Writer's pictureKevin Hurley

Marketbites: Powell Delivers Hawkish Comments


Portfolio Manager Commentary:

The S&P 500 closed nearly flat Wednesday despite commentary from Jerome Powell warning about more restrictive policy ahead. as the Fed continues to fight inflation. Powell spoke before a panel with Bank of England Governor Andrew Bailey, European Central Bank President Christine Lagarde, and Bank of Japan Governor Kazuo Ueda at the ECB Forum on Central Banking in Sintra, Portugal.

“We’re all digesting the comments from the big four central bankers,” Bokeh Capital Partners’ Kim Forrest said. “And it feels like the market really wants to go higher, but the whole, ‘we need to have higher rates for longer’ message is kind of serving as today’s cap.”

Chip stocks fell a day after The Wall Street Journal reported that the U.S. was considering new export restrictions to China. Artificial intelligence beneficiary Nvidia dropped by more than 1%, and the iShares Semiconductor ETF (SOXX) also declined.

Investors are preparing to close out the best first half for the Nasdaq in 40 years, as they ride a wave of optimism around artificial intelligence that has significantly buoyed a handful of mega-cap tech stocks. The S&P 500 and Nasdaq Composite are higher this year by 14% and nearly 30%, respectively.

Chart of the Day:

Lordstown Motors, the electric-truck startup once cheered by investors during the SPAC boom and hailed as a savior for a closed GM factory in Ohio, has filed for bankruptcy, the company said Tuesday morning. The filing came after talks fell through on a plan for Lordstown’s investment partner, Taiwan-based contract-manufacturing company Foxconn Technology, to buy $170 million in shares of the electric- truck maker, Lordstown said.

Source: WSJ

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