Last Updated 4:05 PM EST
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Stock indices finished today’s trading session mixed following the release of the Federal Reserve’s summary of economic projections. The Nasdaq 100 (NDX) and the S&P 500 (SPX) gained 0.7% and 0.08%, respectively. On the other hand, the Dow Jones Industrial Average (DJIA) fell 0.68%. The energy sector (XLE) was the session’s laggard, as it fell 1.05%. Conversely, the technology sector (XLK) was the session’s leader, with a gain of 1.01%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.8%, while The Two-Year Treasury yield increased, as it hovers around 4.7%. This brings the spread between them to -90 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 4.75% to 5% decreased to 9.4% compared to yesterday’s expectations of 16%.
In addition, the market is now also assigning a 44.7% probability to a range of 5.25% to 5.5%. For reference, investors had assigned a 35.9% chance yesterday.
Last updated: 2:10PM EST
Stocks plunged following today’s FOMC meeting. At the time of writing, the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.4%, 0.5%, and 1%, respectively.
Last updated: 11:11AM EST
Stocks are mixed so far in today’s trading session as investors await the Federal Reserve’s interest rate decision. At the time of writing, the Nasdaq 100 (NDX) and S&P 500 (SPX) are up 0.5% and 0.3%, respectively. On the other hand, the Dow Jones Industrial Average (DJIA) is down 0.3%.
Last updated: 9:30AM EST
Stocks opened lower on Wednesday after the latest Producer Price Index (PPI) data indicated that wholesale prices dropped 0.3% in May, its third drop in the past four months indicating that inflation could slow down further later this year. Economists had forecast a 0.1% drop in PPI.
On an annual basis, wholesale prices slowed to 1.1% in May from 2.3% in April- the lowest reading since December 2020. Wholesale prices, excluding food and energy costs, remained flat month-over-month.
The Nasdaq 100 (NDX) and S&P 500 (SPX) were down 0.19% and 0.02%, respectively, while the Dow Jones Industrial Average (DJIA) is down 0.36% at 9:30 a.m., EST, June 14.
First published: 4:26AM EST
U.S. Futures are trading mixed this morning as traders gear up for the monetary policy announcement later in the day. Futures on the Nasdaq 100 (NDX) and S&P 500 (SPX) are up 0.24% and 0.18%, respectively, while those on the Dow Jones Industrial Average (DJIA) are down 0.09% at 4:00 a.m., EST, June 14.
The consumer price index (CPI) figures for May came in line with expectations, fuelling a rally in stock indices yesterday. Inflation in May grew a modest 0.1%, with a 4% increase for the past 12 months, the lowest in two years. Following the release, markets are positively expecting the Fed to pause the rate hike in today’s FOMC meeting. Currently, interest rates are pegged in the range of 5% to 5.25%.
Additionally, markets will listen attentively to Fed Chair Jerome Powell’s speech following the meeting, which might shed some light on the current state of the economy and the expected future course of action. Traders will also closely monitor May’s producer price index (PPI) data due this morning at 8:30 a.m., EST, as an important gauge of inflation. Experts expect a decline of 0.1% month-over-month.
Turning towards the news flashes, Microsoft’s (NASDAQ:MSFT) $69 billion acquisition of Activision Blizzard (ATVI) hits another major roadblock as a U.S. judge temporarily blocks the deal. The court has scheduled a two-day hearing, beginning June 22, to thoroughly examine the matter and consider all relevant evidence.
Interestingly, news related to Pride Month celebrations continues to do the rounds. Anheuser-Busch InBev’s (NYSE:BUD) Bud Light has been dethroned from its position as America’s top-selling beer due to the backlash the brand has been facing since April for its partnership with transgender influencer Dylan Mulvaney. At the same time, Starbucks (NASDAQ:SBUX) is fighting against the so-called “false claims” made by the Starbucks Workers United union, alleging the company is not allowing decorations for Pride Month.
Elsewhere, European indices are trading in the green today in anticipation of the U.S. Fed’s interest rate decision. Meanwhile, the Office for National Statistics disclosed that the U.K.’s gross domestic product (GDP) expanded by 0.2% in April, in contrast to a 0.3% contraction registered in March, fuelling optimism that the nation will avoid a recession.
Asia-Pacific Markets End Mixed on Wednesday
Asia-Pacific indices ended the trading session mixed today, on a mixed set of data. Economists are worried about China’s property sector weakness spreading to other Asia-Pacific economies, and the possibility of a very slow recovery. The news sent Chinese stocks into a jittery trade.
Hong Kong’s Hang Seng index and China’s Shanghai Composite index ended down by 0.54% and 0.14%, respectively, while the Shenzhen Component index ended the day up by 0.26%.
In the meantime, Japan’s indices continue their upward spiral, with the Nikkei hovering over the 33,000 level, closing up by 1.47%. Similarly, the Topix index ended up 1.31%, marking its all-time high this year. Remarkably, Toyota Motor’s (NYSE:TM) stock touched a 16-month high as shareholders reinstated the board with Akio Toyoda at the helm and welcomed the company’s EV strategy.
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