Last Updated: 4:04PM EST
Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.02%, 0.87%, and 0.67%, respectively.
Earlier today, RBC Capital Markets weighed in on the recent market decline and suggested that the S&P 500’s pullback could continue until stabilizing between 5% and 10% below its recent peak of 5,264.85. This is based on a similar drop that occurred last fall.
RBC Capital Markets explained that pullbacks greater than 10% typically happen amid growth scares, where recession fears drive market dips that turn out to be overblown. However, given that U.S. GDP forecasts recently saw an uptick, the firm is skeptical about the market falling beyond the 10% mark.
First Published: 5:01 AM EST
U.S. futures traded higher on Monday morning after Friday’s sell-off, largely driven by the technology sector. Investors remain focused on upcoming earnings reports from key companies and a slew of economic data releases to gain insight into the Federal Reserve’s monetary policy. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by 0.44%, 0.33%, and 0.34%, respectively, at 4:30 a.m. EST, April 22.
The Nasdaq Composite and S&P 500 declined by 5.52% and 3.05%, respectively, in the past five days. Meanwhile, the Dow Jones ended the week roughly flat due to its lower exposure to tech companies. Rising expectations that the central bank will hold off on interest rate cuts in 2024, coupled with the recent significant increase in Treasury yields, hurt investors’ sentiments.
In this week’s economic bulletin, investors await the preliminary readings of the S&P Global Manufacturing PMI and S&P Global Services PMI for the current month, scheduled for release on Tuesday. Also, the first quarter Gross Domestic Product (GDP) report will be made public on Thursday. Importantly, Core Personal Consumption Expenditures (PCE) data for March is scheduled for release on Friday.
On the earnings front, it should be noted that four of the Magnificent Seven stocks will report their financials this week, which include Tesla (TSLA), Meta Platforms (META), Microsoft (MSFT), and Alphabet (GOOGL). Today, companies such as Albertsons (ACI), Verizon (VZ), and Cleveland-Cliffs (CLF) will report their quarterly numbers.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.64%. At the same time, WTI crude oil futures trended lower, hovering near $82.02 per barrel as of the last check, as tensions in the Middle East eased.
Elsewhere, European indices opened higher today as traders shifted focus from last week’s geopolitical tensions to a busy corporate earnings week.
Asia-Pacific Markets Closed Mixed Today
Asia-Pacific markets ended the trading day on a mixed note. Investors await the Bank of Japan’s policy decision later this week. Additionally, key economic indicators from the region, including the Consumer Price Index (CPI), inflation, and GDP estimates, will be closely watched.
Hong Kong’s Hang Seng index was up 1.77%. Similarly, Japan’s Nikkei and Topix indices rose by 1% and 1.38%, respectively. Nevertheless, China’s Shanghai Composite and Shenzhen Component indices were trading lower by 0.67% and 0.43%, respectively.
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