The Dow Jones Industrial Average briefly reversed lower before turning positive again as the stock market reacted to the Fed's decision to raise interest rates for the first time since 2018.
The major indexes all rallied, however, into the close on Wednesday, each closing well over 1% higher.
The decision to raise interest rates by 25 basis points was in line with economists' expectations. As of now, the Fed anticipates six more rate hikes in 2022 to counteract high inflation. However, new risks to economic growth in the U.S. may prevent the Fed from raising rates as quickly as originally expected.
Most of the S&P 500 sectors closed higher, despite trading lower earlier in today's session. The Financial Select SPDR ETF closed over 2.5% higher as technology and consumer discretionary stocks led the upside. Meanwhile, the utility and energy sectors led the downside with slight losses. The Energy Select SDPR ETF fell roughly 0.4% after being down as much as 3.8% earlier in today's session.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34063.56 | +519.22 | +1.55 |
| S&P 500 | (0S&P5) | 4358.11 | +95.66 | +2.24 |
| Nasdaq | (0NDQC ) | 13436.55 | +487.93 | +3.77 |
| Russell 2000 | 201.92 | +6.14 | +3.14 | |
| IBD 50 | 37.53 | +0.84 | +2.29 | |
Last Update: 4:16 PM ET 3/16/2022 |
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U.S. crude oil futures continued lower to close at around $95 a barrel, down roughly 1.4% after falling back below $100 a barrel earlier this week. Oil has plunged nearly 30% from its high above $130 on March 7.
Dow Jones In The Stock Market Today
At the close, the Dow Jones industrials held a gain of 1.5%, while the Nasdaq gained 3.7%. The S&P 500 advanced 2.2%, and the Russell 2000 traded 3.1% higher. Early data showed volume was running higher on the Nasdaq and on the NYSE vs. the close on Tuesday, a bullish sign for investors. Higher trading in heavy volume is a sign of institutional accumulation.
After being turned away at its 21-day exponential moving average earlier in today's session, the Nasdaq reversed higher and closed near intraday highs, retaking the 21-day line. The S&P 500 and Dow Jones industrials also reclaimed this key area of support in today's market. The indexes also still remain above their lows from Feb. 24, which serves as an important area of support for now.
Meanwhile, the 10-year Treasury yield extended gains after the Fed decision to around 2.18%. The yield on the benchmark U.S. government bond has soared 46 basis points over the past seven sessions, not including today.
Dow Jones stocks outperforming on Wednesday included financial stocks JPMorgan and Goldman Sachs, up over 4% and 3%, respectively. Shares of JPMorgan moved closer to reclaiming their 21-day line, while Goldman Sachs reclaimed this line after gapping up. Nike also outperformed, rallying nearly 5% ahead of next week's earnings report.
On the downside, Walgreens and Johnson & Johnson fell roughly 1.5% and 1%, respectively.
IBD 50 Stocks: Health Care Leaders Near Buy Points
The Innovator IBD 50 ETF rose 2.3% and continued to regain some of its recent losses. Alpha & Omega Semiconductor and breakout stock J.B. Hunt helped lead the index.
J.B. Hunt rose over 8% on Wednesday as shares soared in heavy volume. The stock remains in buy range from a proper entry of 208.97. The trucking industry group, of which J.B. Hunt is a part, was among the day's top performers, up around 4%. Several computer software industry groups also outperformed, along with a few semiconductor-related groups.
Several beaten-down tech stocks in the Nasdaq 100 like Atlassian, Datadog, DocuSign and Zoom Video also showed gains of at least 6%.
Elsewhere, IBD 50 stock Costco reversed a 1% decline and rose 0.2%. Shares briefly scored a breakout earlier today but closed just below the buy point. The stock rose above a 545.39 buy point of a cup-with-handle base.
IBD 50 stock UnitedHealth Group showed similar action and also briefly traded inside a buy zone. The stock closed at break-even on Wednesday and closed just below its 501.03 buy point of a double-bottom base.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
