- S&P 500 up 122 points to 4298, or 2.9%
- Nasdaq +3.1%
- DJIA +2.8%
- Russell 2000 +2.6%
- TSX Composite +1.4%
Although overall economic activity edged down in the first quarter, household spending and business fixed investment remained strong. Job gains have been robust in recent months, and the unemployment rate has declined substantially. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures.
The proposed sanctions will also target two other major banks, believed to be the Credit Bank of Moscow and the Russian Agricultural Bank. That adds to the phased oil embargo earlier here.
The Financial Times piece on this is gated, but if you can access it its here (link).
What little can be gleaned from the tweet (not gated) is that state firms are not buying but independents are.
The Federal Open Market Committee statement is due on Wednesday 4 May at 1800 GMT
- Powell’s press conference follows at 1830 GMT
- A half point hike in the fed funds target range to 0.75%–1.0% is expected alongside implementation of plans to shrink the balance sheet.
- A move other than a half percentage point hike would be a surprise to markets.
- One thing to watch for would be any signs of a shift in the explanation of the drivers of inflation toward something that is now believed to be longer-lived.
- Nothing in the March dot plot indicates that the Fed plans on pausing rate hikes any time soon.
- The direction of risks to inflationary pressures remains pointed higher and is likely to result in Chair Powell maintaining a hawkish stance.
The major US indices are closing higher for the 2nd consecutive day. Having said that, the gains were relatively modest as traders await the Fed decision tomorrow.
The final numbers are showing:
- Dow industrial average is up 67.27 points or 0.20% at 33128.78
- S&P is up 20.08 points or +0.48% at 4175.47
- Nasdaq is up 27.75 points or 0.22% at 12563.77
- Russell 2000 is up 15.94 points or 0.85% at 1898.85
Closing changes for the main European bourses:
- Stoxx 600 +0.4%
- DAX +0.6%
- UK FTSE +0.1%
- French CAC +0.6%
- Spain IBEX +1.4%
- Italy MIB +1.5%
Citi confirmed a trading error on its desk was responsible for the flash crash yesterday. Once the market has figured out what happened, it cleans up the mess quickly.