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The Markets Adapt to the Fed: 5 Key Factors on Thursday in the Stock Market

Published 2022-05-26, 03:08 a/m
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By Laura Sanchez

Investing.com - Investors adapt to yesterday's Federal Reserve minutes, which reiterated its commitment to adopt a more hawkish approach if necessary.

Corporate earnings season continues.

Oil rises.

Cryptocurrencies trade lower this morning.

Here are the five factors investors should consider when making their decisions today:

1. Market price in Fed minutes

Stocks are adjusting to the Fed minutes from last night, which, as expected by experts, indicated that the agency is moving towards further tightening its measures to attack inflation, and opening the possibility of moving from a "neutral" to a "restrictive" line.

This continues to be the focus of investor attention, especially after Fed Chairman Jerome Powell reiterated that he will raise interest rates as much as necessary to control inflation.

2. Corporate results

The corporate earnings season continues. We continue to keep a close eye on the tech and retail companies, after a mixed batch of data.

Today, Alibaba (NYSE:BABA), Costco (NASDAQ:COST), VMware (NYSE:VMW), Dollar General (NYSE:DG), and others are reporting their numbers.

3. Crypto down

The cryptocurrency sector fell this morning. Bitcoin is trading at $29,000 and Ethereum at $1,900.

4. Asia and the U.S. stock market

The main Asian indices are mixed today. Nikkei is down 0.1%. Hong Kong's Hang Seng lost 0.5%, and the Shanghai Composite gained 0.6%.

On Wall Street, the market ended yesterday in the green. The S&P 500 (0.9%), Nasdaq (1.5%), and Dow Jones (0.6%) closed higher.

5. Macroeconomic data

The main macroeconomic references in Europe include consumer confidence and industrial sales in Italy.

In the US we will see pending home sales, quarterly GDP, and initial jobless claims numbers.

Follow the day's events on our economic calendar: https://ca.investing.com/economic-calendar/

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