US stocks came under pressure after the Federal Reserve raised rates by 25 basis points and signalled at least one further increase is likely this year. Treasury yields and the US dollar moved sharply higher, while oil prices fell on reports of a potential alternative route for Saudi crude exports. Gold also finished lower after a volatile session. Attention now shifts to the Bank of England interest rate decision and key US economic data.
📊 Equities
US stocks came under pressure after the Federal Reserve delivered its highly anticipated 25-basis point rate hike and signalled that at least one further increase is likely before the end of the year. The Dow led losses, falling 1.21%, while the S&P 500 dropped 0.45% and the Nasdaq finished almost unchanged, down 0.01%.
🛢️ Oil
Oil prices fell heavily after reports that Saudi Arabia could ease some supply concerns by using Oman as an alternative route for crude exports. Brent dropped 2.97% to $105.52 a barrel, while WTI fell 3.54% to $102.08.
🥇 Gold
Gold experienced another volatile session. It traded higher for much of the day before dropping more than 2% following the Fed announcement as both the dollar and Treasury yields surged. Gold recovered some losses into the close but still finished 0.71% lower at $4,262.09.
💵 FX & Bonds
US Treasury yields pushed higher following the Fed announcement. The 2-year yield jumped 7.4 basis points to 4.737%, while the benchmark 10-year yield rose 2.1 basis points to 5.023%. The USD Index gained 0.71% to close at 100.33.
| Market | Change | Close |
|---|---|---|
| Dow | -1.21% | 51,461 |
| S&P 500 | -0.45% | 7,551 |
| Nasdaq | -0.01% | 25,978 |
| USD Index | +0.71% | 100.33 |
| US Treasury – 2 Year | +7.4 bps | 4.737% |
| US Treasury – 10 Year | +2.1 bps | 5.023% |
| Oil – Brent | -2.97% | $105.52 |
| Oil – WTI | -3.54% | $102.08 |
| Gold | -0.71% | $4,262.09 |
📌 Today’s Focus
Markets will continue to digest the Federal Reserve’s decision and guidance before attention shifts to the Bank of England. US weekly unemployment claims and the Philly Fed Manufacturing Index will also be in focus.
🔹 Asian Session – 8.455 am – New Zealand – GDP Data
🔹 European Session – 9.00 pm – UK – Bank of England Interest Rate Decision
🔹 US Session – 10.30 pm – US – Weekly Unemployment Claims Data
🔹 US Session – 10.30 pm – US – Philly Fed Manufacturing Index Data