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Powell finally shifts his rhetoric- S+P 500 hands back opening gains

Yesterday the higher opening for the US stock markets was their best levels of the day. The major indexes were already dropping back, when the Fed boss Jerome Powell came over the wires and ensured there was no significant change on the day come the close of business. Essentially Powell was forced to dial back his hitherto dovish rhetoric and repeat the message previously sent out by so many of his colleagues- that US interest rates were likely to stay higher for longer. This has essentially removed the chances of June Fed rate cut. The markets have pretty much been driving Powell to remove his dovish pivot anyway and that is why the dollar has advanced and the froth has come off US stocks, as yields rise to 2024 highs. So, yesterday the early gains in the US stock markets were mostly reversed. The broader US market, as defined by the S+P 500 was the weakest of the three main indexes. So, despite getting an opening lift from the Q1 Bank earnings reports, the index later closed lower on the day. The losses were not huge though, but certainly in contrast to what seemed likely earlier in the day. The index closed 10 points lower, at 5,051. The futures are higher this morning though and there will be more to add on that a little later on 
 

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