Wall Street Strategies
Hello! Sign in or Register


Afternoon Note

Hawkish Powell

By Karina Hernandez, Senior Research Analyst
3/7/2023 1:46 PM

Fed Chair Powell’s comment now tilt to the hawkish side, which spooked the markets that are near sessions lows.  Powell warned that the central bank could speed up interest rate hikes and that the termina rate “is likely to be higher than previously anticipated.”

Meanwhile, market probability of 50bps hikes in March rises to 60%.

Chart, box and whisker chartDescription automatically generated

Among the notable market reactions from today’s testimony is the 2y10y curve inversion, breaking the negative 100 basis point level. This was not seen since 1980.

Image

All sectors posting losses with Utilities and Real Estate leading. Consumer Discretionary is the least bad performer, helped by solid results and guidance from Dick’s Sporting Goods (DKS).

TableDescription automatically generated

It is going to be interesting to see if buyers show into the close. 


 

Log In To Add Your Comment


Home | Products & Services | Education | In The Media | Help | About Us |
Disclaimer | Privacy Policy | Terms of Use |
All Rights Reserved.

 

×