On Wednesday, the stock market boom slowed down as the Federal Reserve predicted that the banking crisis will cause a recession.
A small recession starting later this year was predicted by Fed officials, according to recently released minutes from the March 21–22 meeting. According to the Fed minutes, policymakers anticipated that the bank stress would “wet economic activity, hiring, and inflation.” Members continued to be “very vigilant” about inflation risks, though. Despite some policymakers’ considerations to hold rates steady, they ultimately decided to vote to increase rates by one-quarter point to 4.75% to 5%.
Before the market opened, CPI was lower than anticipated, with inflation decreasing by one full percentage point to 5%. However, core inflation—which excludes food and energy—rose to 5.6% as predicted.
The probability of a Fed rate hike in early May barely dipped to around 70%.
China’s stocks were hit hard afterwards Berkshire Hathaway (BRKB) CEO Warren Buffett signaled his concerns about geopolitical tensions, particularly in China and Taiwan. Alibaba (baba) JD.com (JD) PDD holdings (PDD) and Tencent Holdings (TCEHY) all fell hard.
BABA stock tumbled further overnight after it was revealed that SoftBank was planning to sell much of its stake in the Chinese e-commerce giant.
TSLA stock met resistance at a key level and continued to consolidate Tesla (TSLA) result next week.
Shopify (BUSINESS), service now (NOW), cloud flare (NETWORK), Crocs (CROX) and note (MRK) are all traded near potential entries.
Delta Airlines (DAL) reports the results early Thursday and announces the results for the airlines. DAL shares fell 2.4% below its 200-day moving average on Wednesday American Airlines (AAL) announced preliminary first-quarter results that came in slightly ahead of the January forecast but below analyst consensus. AAL shares fell 0.2% to a three-month low.
ServiceNow and CROX stocks are on SwingTrader. NOW stock and Crocs are also on the IBD 50. Shopify was the IBD stock of the day on Wednesday.
