Stocks open lower across the board
Yahoo Finance Live anchors discuss how stocks are performing after the opening bell.
Video Transcript
- As you see, investors continuing to brace themselves for the Federal Reserve's interest rate decision here. So that definitely weighing on stocks. Nuveen is ringing the opening bell here on this Tuesday morning. We're going to get that Fed decision tomorrow. I won't say it's all anyone's talking about, but it's dominating most of the conversations that are happening on Wall Street in terms of determining where strategy's going.
- It should be pretty much all anyone's talking about, especially as related to the market movements that we've seen over the past recent weeks. You go even back to the Jackson Hole symposium, and the biggest movements or the gap-up, gap-downs that we've seen and some of the larger permeating tenor that we've seen in the market has been solely correlated to what the Fed policy decision may be and some of the economic data indicators that they track to really base their decisions off of.
And so with that in mind, the markets are broadly just looking at and waiting with bated breath on what the Fed has to say tomorrow, and particularly what the course for the future may look like in this path of rate hikes. As I'm looking across some of the sectors right now, even as we're seeing declines to open up today's trading session across the major averages here in the US, you're seeing declines across all 11 S&P 500 sectors at this point.
It seems like the worst decliners seem to be materials, which we've heard even more on the materials front and how that's impacting broader supply chain issues and the supply chain crunch being exacerbated by the materials downgrades and some of the forecasts that we've seen most recently. But then additionally, real estate and communication services.
- Yeah. And I've got that up on the Interactive there. You have it. Look, you guys. Oh, our production staff is on it. XLB is that materials group that you were just referring to. And indeed, it is leading declines today. Real estate down by 1.3%. Consumer discretionary getting hit, communication services. So it's a broad-based decline for now. It was interesting how we saw sentiment shift yesterday even after that "Journal" story came out emphasizing the Powell connection and that he's willing to be aggressive.
- He's very much signaled that he's willing to be aggressive. It only took him eight minutes to say that and signal that in Wyoming a few weeks back but then even more so from here In what he says tomorrow. And some of the, I think, key words that we're going to be focusing in on, especially with regard to their targets, is really the comfortability of them to actually use the R word.
And that is something that I've been hot-keying every single release that we get from the Fed to see exactly where it comes up, either in their meeting minutes in the conversation, the dialogue that they're having within those four walls or either if it brings up-- or whether or not it gets brought up within his meeting and the press conferences. Typically, it's a question that gets lobbed into him, and that's the only time that you'll see it show up in the transcripts. But if he is actually proactive in using it, I think that the markets would certainly latch on to that.
- Yes. I think that's right. I don't know that he'll say it, but--
- Yeah, he's been very measured in his terms and words.
