Dow Jones Futures Slash Fed Rate-Hike Losses; Goldman In Buy Range, Covid Vaccine Play CureVac Crashes

Posted Date: June 17 2021

Dow Jones futures fell slightly Thursday morning, along with S&P 500 futures and Nasdaq futures. The stock market rally fell modestly on Wednesday as Federal Reserve policymakers signaled earlier interest-rate hikes amid hotter inflation. The 10-year Treasury yield jumped following the latest Fed meeting.

After the close, CureVac (CVAC) announced that its coronavirus vaccine candidate achieved a low 47% efficacy rate in a Phase 2b/3 trial. CVAC stock crashed, while BioNTech (BNTX), Moderna (MRNA) and Novavax (NVAX) rose slightly.

The Federal Reserve still isn't in a hurry to change course. But new inflation targets, rate-hike projections and Fed chief Jerome Powell's comments signaled that policymakers are getting closer to actual Fed taper talk.

Stock and bond markets got the message. The Dow Jones, S&P 500 and Nasdaq composite, down slightly to modestly before the Fed meeting decision, retreated after the 2 p.m. announcement and Powell's comments, paring losses somewhat before the close. The 10-year Treasury yield jumped after hitting three-month lows last week. The U.S. dollar rallied.

Amid the market gyrations, several bank stocks or financial ETFs flashed buy signals, including Signature Bank (SBNY), Wells Fargo (WFC,) Goldman Sachs (GS), Bank of America (BAC) and the triple-levered Direxion Daily Financial Bull ETF (FAS).

Wells Fargo stock is on IBD Leaderboard. The triple-levered FAS is on SwingTrader. Goldman Sachs stock is on the IBD 50.

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Dow Jones Futures Slash Fed Rate-Hike Losses; Goldman In Buy Range, Covid Vaccine Play CureVac Crashes

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