Energy prices continue to rise, giving risk-on investors pause when it comes to stocks and crypto. The Daily Breakdown drills down.
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What’s Happening?
The Fed kept rates unchanged and, in its updated outlook, still expects just one rate cut this year and one next year. Officials raised their 2026 inflation forecast, but also lifted GDP expectations. In plain English, the Fed does not see enough economic weakness — or enough progress on inflation — to feel heightened urgency to cut rates right now.
Markets didn’t love it: the S&P 500 and Nasdaq each fell 1.4%, Bitcoin slid 3.6%, while silver and gold are under notable pressure this morning as seen in the SLV and GLD ETFs.
👀 S&P 500 Spotlight
LyondellBasell Industries led the S&P 500 on Wednesday with a 5.6% gain and is now up more than 70% so far on the year. Behind it was Lululemon Athletica, which climbed almost 4% on earnings. On the downside, Otis Worldwide fell 6.6% and made new 52-week lows, while Charter Communications dipped 6.1%.
⚡ Crypto Corner
While most of the crypto space is under pressure this morning, Quant is looking for its eighth straight daily gain. Currently up almost 3% on the day, QNT has climbed more than 20% amid the rally.
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The Setup — Energy
The energy sector has been on fire, with the XLE ETF rallying in 12 straight weeks. This surge — which started in December — helped trigger a major breakout over multi-year resistance. While energy prices have been the most recent driver of this move, bulls are hopeful that this sector can continue to outperform this year.
Notably, the XLE does support options trading. For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
RACE
Ferrari stock is down slightly this morning after the luxury automaker said it would temporarily suspend deliveries in the Middle East amid rising geopolitical tensions. Shares have struggled for traction so far this year, slipping about 10% as of Wednesday’s close. Read more about RACE with our Deep Dive.
MU
Shares of Micron are moving lower this morning, down more than 5% despite beating analysts’ expectations. Earnings of $12.20 a share cruised past estimates of $8.60 per share, while revenue of $23.9 billion beat estimates of $19.2 billion. Guidance also topped consensus expectations. Check out the charts for MU.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.