Last Updated 4:00PM EST
Stock indices finished today’s trading session in the red as investors see little progress on debt limit negotiations. Indeed, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) fell 0.69%, 1.12%, and 1.28%, respectively.
The technology sector (XLK) was the session’s laggard, as it fell 1.48%. Conversely, the energy sector (XLE) was the session’s leader, with a gain of 1.03%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.7%, while the Two-Year Treasury yield increased to 4.33%. This brings the spread between them to -63 basis points.
Compared to yesterday, the market is pricing in a higher chance of a higher Fed Funds rate for December 2023. In fact, the market’s expectations for a rate in the range of 4.25% to 4.5% decreased to 11% compared to yesterday’s expectations of 13%.
In addition, the market is now also assigning a 35% probability to a range of 4.75% to 5%. For reference, investors had assigned a 34% chance yesterday.
Last Updated 1:38PM EST
Stocks are in the red so far into today’s trading. As of 1:38 p.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are down 0.3%, 0.7%, and 0.9%, respectively.
Earlier today, Markit released its preliminary monthly report for the U.S. Manufacturing Purchasing Managers’ Index, which measures the activity levels of purchasing managers in the manufacturing sector. A number over 50 represents an expansion, whereas anything below 50 means a contraction. The report came in at 48.5, which was lower than the expected 50.
It’s worth noting that this indicator is lower than last month’s reading of 50.2 and has been in an overall downtrend ever since its peak in August 2021, when it hit a high of 63.4.
Last Updated 11:03AM EST
Stocks remain under pressure so far in today’s trading session, as the Nasdaq 100 (NDX) and the S&P 500 (SPX) are in the negative. Meanwhile, the Dow Jones Industrial Average (DJIA) is near the flatline.
Earlier today, the Census Bureau released its United States New Home Sales data for April, which came in at 683,000. For reference, forecasters were expecting a print of 663,000. This was also higher than last month’s report of 656,000.
However, house prices saw a decrease. Indeed, the median sales price was $420.800 in April compared to $449,800 in March, and the average sales price was $501,000, lower than the $562,400 average seen in the prior month.
Last update: 9:30 AM EST. First published: 5:28 AM EST
U.S. stocks continued their downtrend this morning as traders eagerly awaited progress on U.S. debt limit negotiations. At the open, the Nasdaq 100 (NDX) is down 0.4%, while the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are down by 0.3% and 0.25%, respectively, at 9:30 AM EST, May 23.
After what was called a “productive” and “meaningful” meeting last evening, the President and House Speaker Kevin McCarthy will continue meeting and negotiating until a favorable solution is reached. As the countdown begins for D-Day to arrive, markets are growing more wary of the outcome. The sooner the decision is made the better on raising or lifting the debt ceiling, the better, as traders can move past the lurking issues.
On the other hand, Federal speakers continue with their speeches, which are marked by contrasting tones. Some people believe in pausing rate hikes and following the wait-and-watch approach, while others believe more hikes are required to curb inflation.
Meanwhile, banking stocks rallied yesterday following PacWest Bancorp’s (NASDAQ: PACW) announcement of selling a portfolio of real estate construction loans for $2.6 billion. On the earnings front, Lowe’s (NYSE:LOW), BJ’s Wholesale (NYSE:BJ), Dick’s Sporting Goods (NYSE:DKS), and Intuit (NASDAQ:INTU) report today.
On the economic front, S&P Global’s (NYSE:SPGI) Manufacturing and Services PMI data along with New Homes Sales figures are expected during the day.
Elsewhere, European indices are trading mixed today on mixed economic datasets from various regions of the Eurozone. Also, traders await the outcome of the U.S. debt ceiling negotiations.
Asia-Pacific Markets End Mixed
Asia-Pacific indices also ended the trading session mixed, following differing economic indicators from different nations. Major indices erased all the gains of the previous sessions and ended in the red.
Hong Kong’s Hang Seng, China’s Shanghai Composite, and Shenzhen Component indices ended the trading session down by 1.25%, 1.52%, and 1.03%, respectively.
At the same time, Japan’s Nikkei and Topix indices ended down by 0.42% and 0.66%, respectively.
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