Energy-Related Stocks Rose after FOMC Decision

How Did Global Markets and Commodities Respond to FOMC News?

(Continued from Prior Part)

Commodities trade higher following FOMC decision

Commodities were trading at a higher note following the US Federal Reserve monetary policy, which kept interest rates unchanged but kept the outlook open for further rate hikes in June. Equity markets were trading positively following dips in crude prices. As of 4:00 PM EST on April 27, the S&P 500 VIX Index had fallen 1.4% while the S&P 500 Futures Index and the Dow Jones Industrial Average rose 0.13% and 0.28%, respectively. NASDAQ futures showed less momentum and fell 0.51%.

US macroeconomic data

While pending home sales increased by 1.4% on an annual basis in March against a 0.7% increase in February, the momentum was slower on a monthly basis with a similar 1.4% increase in March compared to a 3.4% rise in February. According to the Energy Information Administration reports, crude stocks climbed 2 million barrels last week to an all-time peak of 540.6 million barrels even as crude prices rose.

Impact on ETFs across sector SPDR indexes

The crude oil and oil exploration sectors traded positively following the rise in crude prices. The SPDR S&P Metals & Mining ETF (XME) was the outperformer of the day on April 27, rising 3.5% as of 4:00 PM EST. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 3.1% while the Energy Select Sector SPDR ETF (XLE) rose 1.9% on the day.

Among the major sector-specific SPDRs trading negatively, the SPDR S&P Biotech ETF (XBI) fell 0.55%. The Technology Select Sector SPDR ETF (XLK) and the Consumer Discretionary Select Sector SPDR ETF (XLY) fell 0.54% and 0.11%, respectively, as of 4:00 PM EST.

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Browse this series on Market Realist:

• Part 1 - US Federal Reserve Decides to Wait and Watch

• Part 3 - Weak Oceania Data Took Asian Markets and Australian Dollar Down