- US equities retreated ahead of the Fed's rate decision, with the S&P 500 down 0.44%; developed ex-US fell 0.43% and emerging markets slipped 0.35%. Fixed income was soft as Treasury yields pushed to multi-decade highs.
- Broad commodities surged 1.40% on the day and are up 42.46% year-to-date, driven by energy strength tied to Middle East supply concerns. Energy was the only S&P sector that gained, up 2.17% with RSI at 68 and up 49.47% year-to-date.
- The move reversed midweek: Diamondback Energy plunged 7.7%, the S&P 500's second-biggest decliner, as crude oil futures fell more than 3% ahead of the Fed's decision despite continued Middle East supply disruptions.
- S&P 500 E-Mini futures were down 0.14% and Nasdaq 100 E-Mini futures down 0.13%, trimming earlier losses as a retreat in oil prices from session highs eased pressure on Treasuries.
- Crypto-adjacent equity funds led laggards, with the Global X Blockchain ETF down 6.70% and the VanEck Digital Transformation ETF down 5.81%, spilling over from Bitcoin's slide below $77,000 ahead of a Senate vote on digital-asset legislation. Cybersecurity and biotech ETFs were the day's leaders.
Quotes
“Energy (XLE) was the standout sector, gaining 2.17% and pushing its RSI to 68, near overbought territory, as crude prices climbed on Middle East supply concerns”
“Diamondback Energy (FANG) plunged 7.7% in Wednesday's trading, the day's second-biggest decliner on the S&P 500, as crude oil futures fell more than 3% ahead of the Federal Reserve's decision on interest rates and as continued disruptions in the Middle East kept supply”
“September S&P 500 E-Mini futures (ESU26) are down -0.14%, and September Nasdaq 100 E-Mini futures (NQU26) are down -0.13% this morning, trimming most of their earlier losses as a retreat in oil prices from session highs eased pressure on Treasuries.”