Last Updated: 4:05PM EST
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Stock indices finished today’s trading session mixed. Indeed, the Nasdaq 100 (NDX) fell 0.23%, while the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) gained 0.23% and 0.37%, respectively. Earlier today, the Federal Reserve Bank of New York published its latest quarterly Household Debt and Credit Report, which revealed a concerning uptick in financial stress among younger and lower-income households.
Overall debt rose by 1.2% in Q4 2023. With total debt reaching $17.5 trillion–driven by increases in mortgage, credit card, and auto loan balances–delinquency rates have surged, especially for credit card and auto loan debts. This rise in delinquencies highlights the growing financial pressures on these demographics, even as credit quality for newly originated loans remains steady.
Against this backdrop, Cleveland Fed President Loretta Mester emphasized the importance of maintaining the current nominal funds rate to ensure inflation’s sustainable return to the 2% target. Mester’s cautious stance on rate adjustments reflects a broader Fed strategy to balance employment and inflation risks with a gradual approach to rate reductions later in the year.
Meanwhile, Neel Kashkari of the Federal Reserve Bank of Minneapolis acknowledges the Fed’s progress on inflation but signals caution, noting that the U.S. is not fully on target yet. With recent data indicating an inflation rate that is approaching 2%, Kashkari remains optimistic about avoiding a recession this year. Nevertheless, he is wary of potential external shocks.
First Published: 4:06AM EST
U.S. futures were flat on Tuesday early morning after a dull trading session yesterday. The three major indices – Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) – ended in red on Monday as U.S. treasury yields surged on indications of fewer-than-expected interest rate cuts in 2024. Futures on the Nasdaq 100 and the S&P 500 were up about 0.31% and 0.16%, respectively, at 3:22 a.m. EST, February 6, while the Dow Jones Industrial Average fell by 0.01%.
In major stock market news, McDonald’s (MCD) declined 3.7% yesterday following the release of mixed Q4 results. Furthermore, EV giant Tesla (TSLA) fell 3.6% on concerns about rising competition and continued pricing pressure. Additionally, Snap (SNAP) stock ended about 2% lower on 10% global headcount reduction plans. The stock of Palantir (PLTR) surged 17.3% in the extended trading session on Monday. The software company reported a 20% jump in Q4 revenues from the year-ago quarter.
In terms of corporate earnings due today, several key companies are slated to release their quarterly numbers. The list includes Eli Lilly (LLY), Amgen (AMGN), BP (BP), Ford (F), Fortinet (FTNT), KKR & Co. (KKR), Chipotle (CMG), and Spotify (SPOT).
Meanwhile, oil prices witnessed a modest upward trend at the time of writing. The WTI crude oil futures hovered near $72.98 per barrel as of the last check.
Elsewhere, European indices opened higher on Tuesday as investors looked forward to Eurozone retail sales data for December and earnings reports from major European firms.
Asia-Pacific Markets Ended in Green on Tuesday
Most of the Asia-Pacific indices closed higher today after the Chinese government promised to take measures to prevent any market downturn.
Hong Kong’s Hang Seng index closed 4.02% higher. Also, China’s Shenzhen Component Index and the Shanghai Composite ended up by 6.22% and 3.23%, respectively.
On the other hand, Japan’s Nikkei and Topix finished lower by 0.53% and 0.68%, respectively.
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