Stock Market Update Wednesday, January 31, 2024

Stock Market Update Wednesday, January 31, 2024 Today's main event was the FOMC announcement and the subsequent press conference. Before the news, the Nasdaq was down by about 1.5%, while the S&P was off by 1%, and the Dow remained relatively flat. Following the Fed's statement, where it emphasized vigilance but hinted at potential rate cuts if inflation allows, alongside a dovish press conference by Jay Powell, the stock market attempted to rally but struggled to gain momentum. In terms of individual stocks, many were impacted by their high valuations, with Google leading the downside due to experiencing a slowdown.

The major uncertainty of the day likely stemmed from New York Community Bank, which reported disappointing results, largely attributed to its acquisition of SVB. The bank also suspended its dividend, leading to a 40% drop in its stock price. This development may have unsettled some investors, sparking concerns about a potential slow-motion bank run akin to what occurred last spring. However, it remains uncertain whether this situation will escalate to that extent. Nevertheless, many regional banks are facing significant challenges due to their exposure to real estate assets and the considerable depreciation of their treasuries. This is a situation that warrants close observation.

Away From Stocks, fixed remained higher, DXY is showing bullish consolidation, Oil closed at 75.85 VIX Closed at 14.34 notice the trend line, there is accumulation happening. Remember that large VIX option buyer that had February expiration date?