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The S&P 500 reaches a new high as Job Openings increase in the U.S

S&P 500 Hits Fresh 1-Year Low, USDJPY Reacts to BOJ Decision & Crude Oil Trades at 1-Month Low

S&P 500 hits fresh 1-year low, despite Fed comments

The S&P 500 fell to a fresh one year low on Friday, as markets reacted to comments from the Federal Reserve.

In a letter to Congress, the Fed addressed the magnitude of the current inflation crisis, and its appetite to take more action.

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Part of the statement read, “The Committee’s commitment to restoring price stability — which is necessary for sustaining a strong labour market — is unconditional”.

On Wednesday, the FOMC increased rates by 0.75%, its highest rate hike since 1994.

As of writing, the S&P 500 had rebounded from earlier lows.

USDJPY higher, as BOJ keeps rates unchanged      

USDJPY was once again higher, as the Bank of Japan opted to keep its monetary policy unchanged.

Despite recent remarks from the country’s Finance Minister, in addition to comments from the bank, it was decided that the current conditions still do not meet the criteria for a hike.

BOJ Governor Kuroda however highlighted the current issues surrounding a weaker Yen.

He stated, “Recent rapid falls in the yen heighten uncertainty on the outlook and make it difficult for companies to set business plans. It is therefore negative for the economy and undesirable”.

Crude oil drops to 1-month low

Crude oil was also trading lower in today’s session, as markets continue to digest President Bidens’s recent comments.

WTI was around 5% lower in today’s session, as fears over a recession finally started to outweigh oil supply concerns.

This, in addition to a potential surge in supply from the United States, has helped send crude lower.

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Overall, WTI is still trading close to $110 per barrel, and may likely rebound from recent losses, so we see significant shifts in the conversations surrounding supply.

 “It’s not always easy to do what’s not popular, but that’s where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized.”

-John Neff.

Eliman Dambell

Senior Market Analyst