Stock Market Today Stocks Post-Fed Pop Reverses After Powell Takes the Mic Kiplinger Kiplinger is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Here's why you can trust us.

Stock Market Today Stocks Post-Fed Pop Reverses After Powell Takes the Mic

It was a volatile session on Wall Street as investors parsed over the Fed's latest policy statement and Powell's presser. (opens in new tab) (opens in new tab) (opens in new tab) Newsletter sign up Newsletter (Image credit: Getty Images) By Karee Venema published 2 November 2022 Stocks spent most of the day lower as investors awaited the conclusion of the Federal Reserve's two-day policy meeting, but enjoyed a short-lived burst higher after the central bank issued its fourth straight 75 basis point rate hike (a basis point equals 0.01%).

For Stocks, the Midterms May Not Matter. Here's Why That's A Good Thing. What sparked that brief turnaround was dovish language in the Fed's statement that said the central bank will consider "the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments." In other words, the Fed could cut back on the scale of its future rate hikes if data confirms inflation is easing. Many of Wall Street's top minds chimed in after the Fed rate hike, including Mike Loewengart, head of portfolio construction at Morgan Stanley Global Investment Office. "Investors seem to be embracing the Fed's acknowledgment that the work they have done will take time to sink in, which could be interpreted as the most painful hikes are behind us," Loewengart says. "Keep in mind though that the Fed remains adamant that its decisions will be based on hard data – most importantly, clear signals that inflation is finally on a downward path. So while hikes are likely still on the horizon, what the Fed says is now as important as what the Fed does."

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Profit and prosper with the best of Kiplinger's expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of Kiplinger's expert advice - straight to your e-mail. Sign up Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice. The major market indexes enjoyed gains ranging from 0.7% to 1.1% in the immediate aftermath of the central bank's decision, but swung sharply lower after Fed Chair Jerome Powell said in his subsequent press conference that it was "very premature" to think about pausing rate hikes. At the close, the Dow Jones Industrial Average was off 1.6% at 32,147, the S&P 500 Index was 2.5% lower at 3,759, and the Nasdaq Composite was down 3.4% at 10,524.

Top Energy ETFs to Consider as Oil Prices Rise

One pocket of strength in the market today were oil prices, with U.S. crude futures climbing 1.8% to $90 per barrel. Oil prices are now up more than 17% from their late-September lows near the $77 per-barrel mark.

5 Best Dow Dividend Stocks to Buy Now What's behind the upswing? "Demand appears to have strengthened, if the drawdowns in U.S. inventories are anything to go by," says Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. "Figures from the American Petroleum Institute showed that crude stocks fell by 6.5 million barrels last week, bucking forecasts that there would be a build-up instead." Streeter also points to unconfirmed speculation of a change to China's zero-COVID policy, "which would also be supportive of commodity prices, given how demand has been weakened during repeated lockdowns." Whatever the reason, continued gains in crude futures could certainly benefit these top energy stocks, while energy exchange-traded funds (ETFs) that hold them and others would also reap the rewards. Here, we've compiled some of the best energy ETFs to gain exposure to oil and gas stocks. Check them out.

65 Best Dividend Stocks You Can Count On in 2022 Explore More Stock Watch Markets Stock Market Today Karee VenemaContributing Editor, Kiplinger.comWith over a decade of experience writing about the stock market, Karee Venema is an investing editor and options expert at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis. Latest 4 Ways You Can Take Advantage of a Down Market With markets down for the year, it may seem that all the news is bad. But now could be a good time to make some profitable moves. By Adam Grealish • Published 11 November 22 New, Used or Leased: Is Now the Time to Buy an Electric Vehicle? The Inflation Reduction Act created new tax breaks for electric vehicles. Here's a guide to which EVs count and the best time to buy. By Rivan V. Stinson • Published 11 November 22 You might also like Stock Market Today: Stocks Lift Off After Encouraging Inflation Report The major market indexes rallied to their best day in two years after data showed inflation slowed in October. By Karee Venema • Published 10 November 22 Stock Market Today: Stocks Snap Win Streak as Midterm Results Roll In A continued selloff in cryptocurrencies and crypto-related stocks put pressure on the broader market today, too. By Karee Venema • Published 9 November 22 Stock Market Today: Huge Crypto Deal Shakes Up Nasdaq News that crypto exchange Binance will buy its rival sent Bitcoin and several tech stocks into a tailspin. By Karee Venema • Published 8 November 22 Stock Market Today: Stocks Rise Ahead of Midterms The Dow outperformed thanks to a major M&A-related boost for drugstore chain Walgreens Boots Alliance. By Karee Venema • Published 7 November 22 Stock Market Today: Stocks Swing Wildly After October Jobs Data The major indexes ended with their first win of the week thanks to the latest jobs report. By Karee Venema • Published 4 November 22 Kiplinger's Weekly Earnings Calendar (Nov. 7-11) stocks Check out our earnings calendar for the upcoming week. By Karee Venema • Last updated 11 November 22 Stock Market Today: Stocks Fall Again as Fed Hangover Persists The major market indexes notched a fourth straight loss as Powell's rate-hike warning kept investor sentiment in check. By Karee Venema • Published 3 November 22 Stock Market Today: Stocks Retreat After Strong Job Openings Data The latest jobs data comes as the Fed kicked off its two-day meeting, with another jumbo-sized rate hike expected to be announced tomorrow. By Karee Venema • Published 1 November 22 View More ▸ kiplinger About Us (opens in new tab) Terms and Conditions (opens in new tab) Privacy Policy (opens in new tab) Cookie Policy (opens in new tab) Kiplinger is part of Future plc, an international media group and leading digital publisher. Visit our corporate site.
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