Last Updated 4:05 PM EST
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Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.67%, 0.36%, and 0.31%, respectively.
The communication sector (XLC) was the session’s laggard, as it fell 0.85%. Conversely, the utilities sector (XLU) was the session’s leader, with a gain of 0.54%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.77%, while the Two-Year Treasury yield also saw a jump, as it hovers around 4.72%. This brings the spread between them to -95 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 7.8% compared to yesterday’s expectations of 10.4%.
In addition, the market is now also assigning a 48.2% probability to a range of 5.25% to 5.5%. For reference, investors had assigned a 43.7% chance yesterday.
Last updated: 3:20PM EST
Stocks are down as we enter the final moments of this week’s trading. Earlier today, Richmond Fed President, Tom Barkin, expressed that he’s open to further monetary tightening if inflation doesn’t return swiftly to the Fed’s 2% target due to slowing demand. Although the Federal Reserve maintained its key rate recently to evaluate the impact of substantial tightening carried out in the past year, Barkin emphasized that retreating from inflation prematurely might lead to its rebound, forcing more aggressive measures. Nonetheless, he suggested that weakened demand could be the key to reigning in inflation.
Barkin acknowledged the challenges in assessing demand, citing volatile data over recent months and resilient consumer spending, particularly in the housing sector. He emphasized that the correlation between weak demand and inflation needs to be established.
Barkin, who participates in policy discussions but is not a voting member of the Federal Open Market Committee (FOMC) this year, highlighted the uncertainties surrounding inflation in the context of ongoing high consumer spending and a robust labor market. Insights into this conundrum are expected in the coming months, he added.
Last updated: 11:30AM EST
Stocks are struggling to find direction at the time of writing as the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are near the flatline.
On Friday, the University of Michigan released its results on consumer inflation expectations over the next five years. Consumers now expect inflation to be 3%, which was lower than the expected 3.1% and a decrease compared to the previous month.
Taking a look at consumer sentiment, results came in at 63.9, which was higher than the expected 60. This is also an increase compared to last month’s reading of 59.2. In addition, consumer expectations were also higher than expected. June saw a print of 61.3 versus the forecast of 56.5. This was also an increase compared to last month’s result of 55.4.
Last updated: 9:30AM EST
Stocks opened higher on Friday and seemed to be headed for a weekly gain as the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.17%, 0.34%, and 0.3%, respectively, at 9:30 a.m., EST, June 16.
First published:4:45 AM EST
U.S. Futures have turned positive after starting the day in the red zone this morning, following a solid trading day on June 15. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up 0.16%, 0.08%, and 0.03%, respectively, at 4:45 a.m., EST, June 16. Considering the past four days’ performance, the three major indexes are on track to finish the week on a positive footing.
Meanwhile, economic data points continue to paint a confusing picture. On one hand, retail sales data came in stronger than expected, while on the other, weekly initial jobless claims showed an inclining trend. Traders will be glued to their screens to see the preliminary data of Michigan Consumer Sentiment due this morning to gauge consumer behavior.
Elsewhere, shares of Adobe (NASDAQ:ADBE) gained in after-hours trading yesterday, after posting solid Q2 results and upbeat guidance. Similarly, Virgin Galactic (NYSE:SPCE) stock surged over 40% in extended trading after the company said it would start its first commercial space flight by this month’s end.
Further, European indices are trading in the green today, following the European Central Bank’s (ECB) expected rate hike of 25 basis points. Christine Lagarde, ECB President, also signaled more rate hikes in the future as inflation remains stubbornly sticky.
Asia-Pacific Markets Finish Higher on Friday
Asia-Pacific indices finished higher today, as the Bank of Japan left its key interest rate unchanged at -0.1%, and as investors digested the U.S. Fed’s monetary policy outlook. Japan’s Nikkei and Topix indices ended the day up by 0.66% and 0.28%, respectively.
At the same time, Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices finished the trading day up by 1.07%, 0.63%, and 1.11%, respectively.
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