🦉 3 Stocks That Plummeted After the Post-Fed Speech Crash
By -Edward Lance Lorilla
June 16, 2024
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Whenever the Federal Reserve (the Fed) speaks, the whole market, the global financial market, watches closely. A single shift in sentiment and approach to where interest rates may be headed could send markets swinging in either direction, and that’s where investors can begin to look for opportunities. Today, three stocks were caught crashing hard after the Fed’s recent speech, and they are worth looking at. In this group, it is stocks like Airbnb Inc. (NASDAQ: ABNB), The Hershey Co. (NYSE: HSY), and even Nike Inc. (NYSE: NKE) that traded down to potentially attractive levels for investors to start considering them for a watchlist. .
Equity markets advanced last week, leaving the S&P 500 at a fresh all-time high. The move was partly driven by the cool read on CPI Wednesday, but the real market driver is earnings. The FOMC and inflation are worries but little more than bricks in the Wall of Worry because of economic strength and S&P 500 earnings. S&P 500 earnings are growing, and growth is accelerating. In this environment, the S&P 500 can continue to rise until the last penny of economic expansion and earnings growth is priced into the market. Based on technical indicators, that could mean another 12% to 15% upside by early next year.
Next week's hurdle will be retail sales. The May reading of Retail Sales data is due on Wednesday and may alter the outlook. Retail sales are expected to accelerate from the previous month and keep the pace above 3% year over year. A weak reading will pass so long as no significant contraction is posted. In that scenario, the long-anticipated recession may have arrived.
Whenever the Federal Reserve (the Fed) speaks, the whole market, the global financial market, watches closely. A single shift in sentiment and approach to where interest rates may be headed could send markets swinging in either direction, and that’s where investors can begin to look for opportunities. Today, three stocks were caught crashing hard after the Fed’s recent speech, and they are worth looking at. In this group, it is stocks like Airbnb Inc. (NASDAQ: ABNB), The Hershey Co. (NYSE: HSY), and even Nike Inc. (NYSE: NKE) that traded down to potentially attractive levels for investors to start considering them for a watchlist.
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