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S&P 500 falls to 10-day low, ahead of FOMC minutes
The S&P 500 fell to its lowest level in over ten days on Wednesday, as traders were preparing for the release of the latest FOMC minutes.
Following last month’s rate hike, today’s minutes will lift the veil on the Fed’s decision to pull the trigger, and its expectations for further hikes in the further.
💡 Hints towards a recession Traders are betting against the U.S. economy from statements hinting at a continuous downfall of consumer stocks. Surging prices are expected to impact the economy and more Fed hikes are expected to slow things further down even more |
Markets are also hoping to get more of an insight into the Fed’s current views on inflation, in addition to the current war between Russia and Ukraine.
Gold prices were somewhat muted during the session, with GBPUSD also consolidating.
As of writing this, the S&P 500 is trading 0.74% lower.
Oil prices slip below $100, following stockpiles data
Oil prices fell below the $100 on Wednesday, as data from the Energy Information Administration showed that stockpiles had risen.
Figures from the EIA reported that Crude inventories
has increased by 2.4 million barrels last week, versus expectations for a drawdown of 2.05 million.
source: tradingeconomics.com
Whilst crude stocks rose, gasoline inventories declined, falling by 2.041 million barrels during the same period.
This data comes as the International Energy Agency (IEA), said it will release 120 million barrels from strategic reserves, in addition to the 60 million already committed by the United States.
WTI crude fell to a low of $97 per barrel, which is its lowest point since March 17th.
U.S. applies further sanctions to Russia, including on Putin’s children
U.S. President Joe Biden today confirmed further sanctions on Russia, following reported civilian slayings in Ukraine earlier this week.
The new sanctions will impact two major Russian banks, Sberbank, which holds close to a third of Russia’s total banking assets, and Alfabank.
Sanctions also were placed on two of Russian President Vladimir Putin’s daughters, who are said to live in Russia.
Speaking today, Biden said that “I made clear that Russia would pay a severe and immediate price for its atrocities in Bucha”.
A statement from the White House that followed insisted that, “We believe that many of Putin’s assets are hidden with family members, and that’s why we’re targeting them.”
This follows yesterday’s announcement from the EU which banned imports of Russian coal.
“You need to know very well when to move away, or give up the loss, and not allow the anxiety to trick you into trying again.”
–Warren Buffett.