Here is what you need to know on Thursday, June 23:

Jerome Powell struck a surprisingly consistent tone on Wednesday when he appeared before the Senate Banking Committee. Well, unsurprising really, and consistent only in the fact that he changed his mind yet again. This man is the ultimate central bank flake. We have had "transitory" inflation to a panic-leaked 75 basis point hike, and now he says a recession is in the cards and that a soft landing is hard to engineer.

He did at least commit to his most recent pivot, that of being the inflation firefighter. 75 basis points looks nailed on for July, but further ahead money and bond markets are starting to price in the increased likelihood that we get a recession and perhaps not a mild one. All this has led to continued uncertainty among financial market investors, and as we keep banging on the market hates uncertainty more than bad news. The bond market is having a hard time coming to some form of consensus on rates. Until it does, expect more equity sell-offs.

The imminent end of H1 may give equities some form of cushion, but then we head straight for earnings season, and this one is likely to get ugly. Already we have pitched in with our $100 price target for Apple (AAPL), and this quarter should see tech companies once again roll over. Note that tech companies are advertising agencies of old. Google, Snap and Meta all rely heavily on advertising spend. Historically, advertising spend falls sharply in a recession. This is already happening, and we saw hints in last quarter's earnings. Expect this trend to accelerate.

Many of the former FAANGT names have rolled over, but Apple is the last block to fall. There is some light at the end of the tunnel, a wash-out earnings quarter could see much of the bad news finally priced and lead to a bottom in equities in late summer or early fall. Until then the focus on quality and defensive or value sectors is likely to outperform, despite June seeing growth outperform. Some profit-taking perhaps? Oil stocks have been the one bright spot this year. Now with oil prices starting to look shaky, the final peg may go. 

The dollar remains at 104.42. Reminder, a strong dollar hurts US global earnings as foreign currency earnings are converted. This is another headwind for Q2 earnings then. Gold trades at $1,832, and Bitcoin is holding on for dear life at $20,600. This is worrying that it has stabilized after recent losses. Usually, stabilization is a continuation signal. Oil is at $106 and has dropped to $101 on Wednesday.

See forex today

European markets are lower: Eurostoxx -0.1%, FTSE -0.1% and Dax -0.7%.

US futures are positive: S&P +0.4%, Dow +0.2% and Nasdaq +0.6%.

Wall Street top news (SPY) (QQQ)

Accenture (ACN) is down as profit drops on Russia's exit.

FactSet (FDS) reiterates guidance as it beats on earnings.

LiAuto (LI) up as it shows off new SUV.

RiteAid (RAD) up on top and bottom-line earnings beat.

KB Homes (KBH) up on earnings beat but warns on rising rates and prices impacting sales growth.

Hyzon (HYZN) up on a deal with Schlumberger.

Occidental Petroleum (OXY): Berkshire buys again.

Snowflake (SNOW) upgraded at JPMorgan.

Revlon (REV) is actually down premarket after spiking 600% following announcement of Chapter 11.

F-Star (FSTX) up 70% on being acquired.

Weber (WEBR) up 15% premarket. Must be BBQ season.

Upgrades and downgrades


Economic releases

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD recovers above 1.0450 as USD slips ahead of US inflation

EUR/USD recovers above 1.0450 as USD slips ahead of US inflation

EUR/USD is trading above 1.0450, displaying a modest rebound on a minor pullback in the US dollar. The US Treasury yields rebound amid cautious optimism, ahead of PCE inflation. The US Core PCE Price Index is seen easing to 4.7% YoY in May. 


GBP/USD advances towards 1.2150 amid USD retreat, US data eyed

GBP/USD advances towards 1.2150 amid USD retreat, US data eyed

GBP/USD is advancing towards 1.2150 amid a broad US dollar retreat, despite a mixed market mood. BOE's Bailey said the UK economy is facing a very large real income shock. UK data and US PCE inflation awaited. 


Gold seems vulnerable near two-week low, eyes US PCE inflation data

Gold seems vulnerable near two-week low, eyes US PCE inflation data

Gold traded with a mild negative bias for the fourth successive day on Thursday and languished near a two-week low touched the previous day. The XAUUSD was last seen hovering around the $1,816 region and was pressured by the prospects for more aggressive rate hikes by the Fed.

Gold News

Breaking: Bitcoin price drops below $19,000

Breaking: Bitcoin price drops below $19,000

Bitcoin price has breached a critical area of support over the past few hours, dipping below $19,000. Transaction history shows that a large number of addresses acquired BTC above $20,000. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!