Good morning and welcome to VTM's Market Update on Thursday, December 15, 2022.

US equity futures are flat this morning, while bonds are mixed. This follows the Federal Open Market Committee's decision yesterday to raise interest rates by 50 basis points, as expected.

The main focus of the market's reaction is on the FOMC's peak rate projection, which came in higher than markets were pricing in. FOMC Chair Jerome Powell also pushed back against the dovish pivot by reiterating the "higher-for-longer" messaging and the need for "substantial evidence" that inflation is retreating in a sustainable manner before considering rate cuts. However, futures continue to challenge the Fed's outlook with rate cuts priced in for next year.

In company news, Kymera Therapeutics is up 14.6% after releasing positive data from a phase 1 trial. Delta Air Lines is up 2.8% after raising its Q4 revenue growth guidance.

It looks like Elon Musk's more unrestricted use of Twitter may conflict with new rules being introduced in the EU. Musk also sold $3.58 billion worth of Tesla stock this week, but it's unclear what he plans to do with the money.

That concludes today's market update.

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