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Post-FOMC React: Nearing Late July Highs

US STOCKS
  • Stocks surged higher, S&P Eminis back to late July levels after the FOMC held rate steady, acknowledged inflation is easing, projected rate cuts for 2024 pull higher (March'24 pricing in nearly 75% of 25bp cut vs. 41.6% this morning).
  • Focus turns to Fed Chairman Powell's press conference at 1430ET.
  • Currently, DJIA trades is up 248.16 points (0.68%) at 36826.53, S&P E-Mini futures up 36.75 points (0.78%) at 4733.75, Nasdaq up 115.8 points (0.8%) at 14647.99.
  • Leading gainers: Utilities and Real Estate sectors continue to lead gainers after the Fed, independent and multi-energy providers supporting the former: WEC Energy +2.34%, Ameren Corp +2.0%, Sempra +1.96%. Real Estate Investment Trusts (REITs) buoyed the latter with industrial and residentials leading: Prologis +2.47%, Boston Properties +2.66%, Alexandria Real Estate +2.47%.
  • Laggers: Materials and Consumer Discretionary sectors continued to underperform, industrial gas providers weighing on the former: Linde -4.25% to around 408.75 after climbing to all-time high of 433.53 Tuesday. Air Products steady in comparison. Auto makers and parts providers weighed on the Discretionary sector: Tesla -1.51%, Ford -1.48%, Aptiv -0.96%.

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