The Stock Market Fluctuated. Which Futures Ended in the Green?

 U.S. stocks plummeted down more than 1% on Wednesday. Thus far, they showed little reaction to the latest Fed statement. A plunge in Boeing and hedge funds selling off long positions while trying to cover a short squeeze weighed down on major indexes.

Shares of movie theatre operator AMC Entertainment Holdings Inc and videogame retailer GameStop Corp each more than doubled on Wednesday. They continued surging forward over the past week, as amateur investors piled into the stocks again and forced short-sellers like Citron to abandon their losing bets.

David Madden, the market analyst at CMC Markets U.K., stated investors are broadly afraid that some investment funds might be quickly closing out positions to shore up their cash positions. According to him, the market might see selling pressure increase for fear; there could be a stampede for the exit.

Most of the stocks remained low after the statement from the Federal Reserve. The central bank made no change to its monthly bond purchases, keeping overnight interest rate near zero. The agency also promised to keep that support intact until a full economic recovery is in place.

Jason Pride, the chief investment officer for private wealth at Glenmede in Philadelphia, noted that the Fed’s statement itself did not contain much new information. However, it did help to abate fears that the agency may be considering tapering asset purchases sooner than analyst expected. The Fed instead added a statement recognizing that in recent months the pace of recovery has moderated.

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How did the major American indexes fare?

The Dow Jones Industrial Average tumbled down by 1.54% to 30,461.63 on Wednesday. Meanwhile, the S&P 500 declined by 1.93% to 3,775.23. The Nasdaq Composite also plummeted down by 1.64% to 13,402.91. Both the S&P 500 and the Dow Jones were on track for their biggest daily percentage fall since Oct 28.

Boeing Co plunged by 2.56% after the planemaker took a significant $6.5 billion charge on its all-new 777X jetliner due to the coronavirus pandemic and the results of a two-year safety crisis over its 737 MAX.

On the other hand, Microsoft Corp soared by 0.83%. The company’s results as the software maker are benefiting from remote working and learning trends worldwide.

The CBOE Market Volatility index increased as high as 29.65, hitting its highest level since Dec 21. Shares of Apple changed insignificantly, while Facebook tumbled down by 2.56%.

Meanwhile, Walgreens Boots Alliance Inc surged forward by 4.80%. The drugstore chain recently named the outgoing chief operating officer of Starbucks, Roz Brewer, as its CEO, boosting its stock.