Morning Movers: Circle rises following regulatory framework for stablecoins

Stocks are treading water as markets await the Federal Reserve’s rate decision and Powell’s remarks this afternoon. Investors widely expect the Fed to hold interest rates steady at 4.25%-4.5%, but the real focus is on the updated dot plot and Powell’s tone. A dovish lean could lift equities, while a hawkish message would likely trigger a pullback.

Tensions in the Middle East, particularly between Israel and Iran, have added geopolitical uncertainty. Oil prices initially spiked on fears of supply disruption through the Strait of Hormuz, but have since pulled back. This risk-off environment has pushed bond yields slightly lower and supported gold prices.

Volatility is slightly elevated ahead of the Fed and tomorrow’s Juneteenth holiday means today’s close could see added positioning moves. The market’s direction into the end of the week will depend heavily on how Powell frames inflation progress and whether the Fed hints at a September rate move.

In pre-market trading, S&P 500 futures rose 0.06%, Nasdaq futures rose 0.14% and Dow futures rose 0.04%.

Check out this morning’s top movers from around Wall Street, compiled by The Fly. Also check out The Fly’s right-to-the-point stock market reporting to YouTube with the new Fly By series. 

HIGHER –

• Circle (CRCL) up 3% after Senate passes bill to set up stablecoin framework
• Scholar Rock (SRRK) up 3% after announcing results from the Phase 2 EMBRAZE proof-of-concept trial assessing apitegromab in combination with tirzepatide to preserve lean mass during tirzepatide-induced weight loss

UP AFTER EARNINGS –

• Korn Ferry (KFY) up 12%
• Euroseas (ESEA) up 10%
• GMS Inc. (GMS) up 7%

DOWN AFTER EARNINGS –

• Aurora Cannabis (ACB) down 13%

LOWER –

• Sunrun (RUN) down 1% after RBC Capital downgraded the stock to Sector Perform with a price target of $5, down from $12
• Chemours (CC) down 1% after updating its Q2 outlook
• Zoetis (ZTS) down 1% after Stifel downgraded shares to Hold with a price target of $160, down from $165