From the Wall Street Journal’s “U.S. Stock Futures Edge Up Ahead of Fed Policy Update” posted early Wednesday:
U.S. stock futures ticked higher Wednesday as investors awaited fresh guidance from the Federal Reserve and another batch of earning reports from the nation’s biggest companies..
The stock market is hovering near all-time highs, with investors betting on strong corporate earnings, the economic rebound, and continued support from central banks’ easy monetary policies. Their optimism has been tempered in recent days by concerns about the Delta variant of Covid-19, China’s regulatory crackdown and the risk of persistently high inflation.
“There is a general fishing for direction right now,” said Aoifinn Devitt, chief investment officer at Moneta Group. “The strong underpinning of the market is that there is a lot of capital waiting on the sidelines, waiting for an opportunity to enter, and that means any corrections are very short lived.”
My take: Buy the rumor and sell the news, I guess. This was Apple’s third blowout quarter in a row, and the third to be rewarded by a sell-off. Who — or what — is making these trades?