🏦Hawkish Fed & More Market Movers

Stocks were predominantly down on Wednesday after the Fed opted to maintain current interest rates, though hinting at a potential quarter-point rate hike later this year. The FOMC unanimously decided to keep the benchmark rate unchanged in the range of 5.25%-5.5%, a peak in the past 22 years. The primary concern is the forecast of notably higher rates in 2024 and 2025 due to the enduring strength of the US economy, robust labor market, and persistent inflation. The "dot plot" predicts another rate increase this year, and rate projections for 2024 and 2025 have been raised by half a percentage point. Jerome Powell’s hawkish speech emphasized the committee's intent for a soft landing with minimal labor market impact, mentioning uncertainties about future economic outlooks. Stock movements on Wednesday were as follows: Klaviyo shares escalated by over 23% following its IPO on the New York Stock Exchange.  Instacart saw a 5% decline after its recent public debut. Steelcase surged by over 26% after announcing Q2 earnings that surpassed expectations. Bausch Health Companies surged over 10% after an upgrade by Jefferies. Stellantis saw a 3% increase as European sales of brands like Peugeot rose. Pinterest shares increased by 4% after a positive revenue growth announcement. General Mills slightly dipped despite surpassing earnings expectations. Coty grew by 5.9% after an optimistic full-year outlook. Zebra Technologies declined by over 4% after a downgrade by Morgan Stanley. Textron rose by almost 5% due to an agreement with NetJets. Chewy dropped over 4% after a downgrade by Oppenheimer. On Holding went up by 1.4% after a positive review from Needham. Lululemon increased by over 2% following Needham's coverage initiation. Azul shares climbed by 12.5% post an upgrade by Goldman Sachs. Build-A-Bear Workshop jumped by 7% after D.A. Davidson initiated stock coverage. Finally, First Citizens BancShares increased by 2.6% after JPMorgan's positive coverage initiation.