Stocks move lower. Shorter-term yields rise. Gold falls. Crude oil lower
At the start of the testimony:
- S&P index -24.36 points or -0.53% 4630
- Dow industrial average -308 points or -0.87% 34828
- NASDAQ index unchanged at 15782
- Russell 2000-24.75 points or -1.1% at 2217.43
- 10 year yield 1.412%
- 2 year yield at 0.445%
- Crude oil $67.50
- Gold $1804.93
As Yellen/Powell wrap up their testimony
- S&P index is down 74 points or -1.59% 4581.29
- The Dow industrial average is down -589 points or -1.68% to 34546.80
- NASDAQ index is down -264.4 points or -1.68% 15518.4
- Russell 2000 is down 53.65 points or -2.39% at 2188.31
- 10 year yield 1.460%
- 2 year yield 0.549%
- Crude oil $65.51
- Spot gold $1771.79
In the forex, the USD moved higher, but is also off the highest levels of the day. The USD is the strongest of the majors while the AUD is the weakest.
The headline catalyst was Powell's comment that:
- It is a good time to retire "transitory" for inflation
He also expressed that is is appropriate at the December meeting to discuss whether to wrap up bond purchases a few months earlier (i.e. speed up the taper).
The chair put it all on the table and is ready to halt inflationary pressures by tapering more quickly and being on the ready to tighten policy earlier than expected in 2022 if needed.
The good news for inflation is the spot price of crude oil is down over 6% on the day and is down -22.89% from the October high. Will those declines start to show up at the gas pump? Will OPEC+ meeting later this week keep production rises on the 400,000 BPD per month trajectory?
