Last Updated: 4:00PM EST
Stock indices finished today’s trading session mixed amid a slew of economic data. The Nasdaq 100 (NDX) and S&P 500 (SPX) gained 0.21% and 0.11%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) slipped by 0.11%. Furthermore, the U.S. 10-Year Treasury yield remained unchanged at 4.35%.
Earlier today, Automatic Data Processing (NASDAQ:ADP) released its Nonfarm Employment Change report, which came in better than expected.
In addition, Markit released its monthly report for the U.S. Services Purchasing Managers’ Index, which measures the activity levels of purchasing managers in the service sector. A number over 50 represents an expansion, whereas anything below 50 means a contraction. The report came in at 51.7, which was as expected but a slight decrease from the previous month’s 52.3.
Moreover, Federal Reserve Chair Jerome Powell reiterated his cautious stance on interest rates. He stated that he doesn’t expect a reduction in the Fed’s policy rate until there is significant evidence that inflation is consistently moving towards the 2% target. Although core inflation fell to 2.8% in February, it was still above the desired goal.
First Published: 5:00 AM EST
U.S. futures traded lower on Wednesday morning after all three major indices – the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) – declined in yesterday’s trading session. Notably, futures on the Nasdaq 100, S&P 500, and Dow Jones were down by about 0.25%, 0.15%, and 0.1%, respectively, at 4:35 a.m. EST, April 3.
Concerns about the Federal Reserve maintaining higher interest rates for an extended period, fueled by solid economic data and rising oil prices, continued to hurt investor sentiments. The SPX, NDX, and the Dow Jones indices continued to retreat from their all-time highs and witnessed declines of 0.72%, 0.94%, and 1%, respectively.
Today, investors are looking forward to the release of the Services Purchasing Managers’ Index (PMI) report for March. This data helps economists gain insights into future economic conditions, as changes in the PMIs usually precede changes in the overall economy. Also, traders will closely watch the ADP private payroll data. Additionally, Fed Chair Jerome Powell is set to speak today and might offer fresh insights into the central bank’s monetary policy.
On the earnings front, Acuity Brands (AYI), Levi Strauss (LEVI), and Simulations Plus (SLP) will announce results today.
In major stock news, Tesla (TSLA) stock fell 5% yesterday on lower Q1 deliveries. Further, Intel (INTC) declined 4.2% in the extended trading session after it disclosed an operating loss of $7 billion in its Foundry business in 2023.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.38%. At the same time, WTI crude oil futures trended higher, hovering near $85.18 per barrel as of the last check. This surge marked the highest level since October, owing to rising tensions in the Middle East and expectations of lower U.S. crude inventories.
Elsewhere, European indices opened mixed today as investors awaited the release of the Eurozone’s preliminary inflation data and unemployment report.
Asia-Pacific Markets Ended Lower on Wednesday
Asia-Pacific indices ended today’s session in the red as investors evaluated the impacts of Taiwan’s strongest earthquake and uncertainties surrounding the Fed’s interest rate cut trajectory.
Hong Kong’s Hang Seng index closed 1.22% lower. Similarly, China’s Shanghai Composite and Shenzhen Component indices fell by 0.18% and 0.44%, respectively. Also, Japan’s Nikkei and Topix indices fell 0.97% and 0.29%, respectively.
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