The US stock market fell on Wednesday as investors waited for the beginning of the Fed's balance sheet reduction plans.
The Fed has raised interest rates several times in order to tame inflation. The balance sheet of the Fed is $9 trillion. Over the next three months, that number will increase to about 95 billion. It's not clear whether investors are prepared for the Fed's tightening.
The writing is on the wall, and investors need to prepare for a coming economic storm. Dimon said that they are going to be very conservative with their balance sheet.
If the Russia-Ukraine conflict is solved in the second half of the year, supply chain and commodity disruptions could be alleviated, according to a Wednesday note from an analyst.
At 4:00 p.m., the US indexes stood here. The close is on Wednesday.
The city of Shanghai reopened on Wednesday after a two-month lock down due to the spread of COVID-19. The reopening of China could help improve supply chain logjams.
US Treasury Secretary Janet Yellen admitted that she was wrong about how big of a risk inflation was in the aftermath of the COVID-19 PAIN. Along with President Joe Biden and Fed Chairman Jerome Powell, the top priority is to tame inflationary pressures.
The company reported better-than-feared first-quarter earnings on Wednesday and its shares spiked more than 10%. The results could lead to a broader tech rally, as it may calm fears about a broad slowdown in enterprise cloud spending.
Oil prices initially fell on reports of a possible suspension of Russia's production. The price of West Texas Intermediate crude oil rose as much as 1.81%. The international benchmark for crude oil rose as much as 1.88%) to $117.77.
It fell to $30,149. The price of ether dropped to $1,820.
The price of gold rose as much as 0.10%. The yield on the 10-year Treasury went up.
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