The Federal Reserve kept interest rates steady on Wednesday as expected, even as Chairman Jerome Powell left the door open to further tightening while acknowledging the economic impact of a recent spike in bond yields. The market believes that his comments are not increasingly hawkish. U.S. Treasuries rallied sharply, with #TLT up 1.77% and the October Treasury yield ( #TNX ) falling sharply to 4.663%.
Qualcomm ( #QCOM ) reported better-than-expected earnings and revenue and better-than-expected guidance. Shares rose nearly 6%. Starbucks (#SBUX) posted an impressive set of results that beat analysts' expectations, sending shares up more than 11%. Paypal ( #PYPL ) third-quarter earnings beat revenue and net income estimates, but guided for fourth-quarter earnings slightly below expectations. Shares rose more than 3%.
A sharp drop in U.S. Treasury yields pushed U.S. stocks sharply higher, with major market indexes rising an average of 1.2%. The S&P 500 Index (#SPX) is now trading at 4293, having recovered above the 200- and 20-day moving averages at 4245 and 4270. The S&P 500 trend has turned higher. Apple ( #AAPL ) reports earnings after the close. Apple's financial report is the biggest threat to U.S. stocks since its valuation and growth rates do not match high stock price. If the market can survive Apple's earnings test, the market could be heading for a year-end bull run.
Bitcoin (#Bitcoin) rose sharply yesterday to break through the $35,000 resistance, but fell back this morning. Once it holds above $35,000, a continuation up pattern is established and another wave of gains is likely technically. The next upside target is $40,000. Cryptocurrency mining company stocks surged. #RIOT, #MARA and BTBT rose 4.51%, 5.61% and 5.83% respectively.
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