Stock indices finished today’s trading session in the green, as the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.72%, 0.43%, and 0.19%, respectively.
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The energy sector (XLE) was the session’s laggard, as it lost 1.22%. Conversely, the real estate sector (XLRE) was the session’s leader, with a gain of 2.01%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 4.57%, a drop of nine basis points. On the other hand, the Two-Year Treasury yield increased, as it hovers around 4.99%.
Last updated: 11:30AM EST
Stocks are mixed so far in today’s trading. Federal Reserve Governors Michelle Bowman and Christopher Waller shared their perspectives on inflation and interest rates in separate events on Wednesday. Bowman emphasized the possibility of raising the Fed’s policy rate further to manage inflation, which she wants reined into the 2% target set by the Federal Open Market Committee.
She highlighted risks from factors such as strong consumer spending and a tight labor market. Moreover, Bowman stressed the need for any regulatory adjustments to consider the health of midsized and smaller banks.
On the other hand, Waller, during the E2 Summit, said that rising bond yields might be aiding the Fed’s efforts. He expressed concerns about the sustainability of a 6% GDP federal deficit and marveled at the labor market’s resilience, noting the current 3.8% unemployment rate despite significant rate hikes.
Waller also dismissed the threat of a Chinese Central Bank Digital Currency (CBDC) to the U.S. dollar’s dominance while maintaining skepticism over the necessity of a CBDC.
Last updated: 9:30AM EST
Stocks opened higher on Wednesday morning, with the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) up by 0.5%, 0.35%, and 0.41%, respectively, at 9:30 a.m. EST, October 11.
Inflation continued to pressure the U.S. economy as wholesale inflation, indicated by the producer price index (PPI), rose by 0.5% in September, higher than estimates of an increase of 0.3%. However, this was less than a rise of 0.7% in August.
On a year-over-year basis, wholesale inflation went up by 2.2% in September, its highest rise since April. This was higher than economists’ forecasts of 1.7%. Core PPI (excluding food and energy) increased by 0.3% in September as compared to estimates of a rise of 0.2%.
Even as PPI data was hotter than expected, 10-year Treasury yields continued to fall and dropped by more than 6 basis points at 4.591%.
First published: 4:26AM EST
U.S. Futures are inching higher on Wednesday morning as traders await September’s Producer Price Index (PPI) data today. Also, minutes from the Federal Reserve’s September meeting is scheduled for later today. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.17%, 0.06%, and 0.01%, respectively, at 4:13 a.m. EST, October 11.
Experts expect PPI to have increased by 0.3% month-over-month in September, milder than August’s growth of 0.7%. Further, on an annualized basis, PPI is expected to have maintained the growth from the previous month of 1.6%. A cooling inflation print could add weight to the Fed’s dovish stance.
The ongoing Israel-Hamas war has unnerved investor sentiment. Markets are anticipating higher oil prices and the possibility of higher inflation amid the escalated war. Notably, WTI crude oil futures are inching higher, hovering near $86.38 per barrel as of the last check. In contrast, the U.S. 10-year treasury yield is steadily dropping, floating near 4.63% at the time of writing. The falling treasury yields are pushing stocks higher. The three major U.S. averages finished the trading session in the green yesterday.
Turning to stocks, General Motors (GM) was quick to fix its issues in Canada. It reached a tentative agreement with Unifor, a Canadian auto workers union, just 13 hours after the strike commenced in GM’s three Canadian facilities. In the meantime, Boeing’s (BA) 737 Max deliveries slipped in September to 15 units, its lowest level since May 2021. Further, Meta Platforms’ (META) content moderation policy is being reviewed by its independent Oversight Board. The refusal to remove President Biden’s altered video from Facebook has prompted the review.
Elsewhere, European indices are trading mixed on Wednesday amid the unsettling war. Traders are also anticipating key PPI data from the U.S., which could direct the Fed’s monetary policy decision.
Asia-Pacific Markets End Higher on Wednesday
Asia-Pacific indices ended in the green today.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices ended higher by 1.29%, 0.12%, and 0.35%, respectively.
Similarly, Japan’s Nikkei ended up by 0.60%, while the Topix index ended down by 0.19%.
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