Stock Market News Today, 6/23/23 – Indices Slide, End Week on Low Note

Last Updated 4:05 PM EST

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 1%, 0.77%, and 0.65%, respectively. The utilities sector (XLU) was the session’s laggard, as it fell 1.48%. Conversely, the communication sector (XLC) was the session’s leader, but still lost 0.23%.

Furthermore, the U.S. 10-Year Treasury yield decreased to 3.74%, while the Two-Year Treasury yield also fell, as it hovers around 4.75%. This brings the spread between them to -101 basis points.

Compared to yesterday, the market is pricing in a higher chance of a lower Fed Funds rate for December 2023. In fact, the market’s expectations for a rate in the range of 5% to 5.25% increased to 32.5% compared to yesterday’s expectations of 26.7%.

In addition, the market is now also assigning a 12.8% probability to a range of 5.5% to 5.75%. For reference, investors had assigned a 17.3% chance yesterday.

Last updated: 1:10PM EST

Stocks remain under pressure so far in the afternoon session, although indices are off their lows. At the time of writing, the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.6%, 0.5%, and 0.5%, respectively. U.S. Treasury Secretary Janet Yellen holds a positive view on the U.S. economy’s prospects, citing strong labor market resilience and the easing of inflation as reasons why the likelihood of a recession has lessened, as reported by Bloomberg. However, she cautioned that the risk remains due to the Federal Reserve’s ongoing policy tightening, with two more rate hikes expected this year following ten increases since March 2022.

Yellen also mentioned the need for a consumer spending slowdown to control inflation, acknowledging that core inflation is quite high. Despite a year-on-year rise of 5.3% in May, the trend is showing signs of slowing, with headline CPI also moderating to a 4% year-on-year increase from April’s 4.9%. Yellen confidently predicted further easing in inflation. This outlook aligns with recent data showing the economy’s steadfastness amidst persistent inflation.

Last updated: 11:25AM EST

Stocks are in the red so far in today’s trading session. At the time of writing, the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 1.2%, 0.8%, and 0.6%, 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 46.3, which was lower than the expected 48.5.

It’s worth noting that this indicator is lower than last month’s reading of 48.4 and has been in an overall downtrend ever since its peak in August 2021, when it hit a high of 63.4.

Last updated: 9:30AM EST

The stock market seemed to be heading for a losing week after global cues pointed toward a monetary tightening policy as Central Banks around the world hiked interest rates. On top of that, Fed Chair Powell’s testimony earlier this week indicated that interest rate hikes are unlikely to stop anytime soon. The tech-heavy Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were all down by 1.01%, 0.87%, and 0.83%, respectively, at 9:30 a.m., EST, June 23.

First published: 6:00AM EST

U.S. Futures are trending down this morning, as monetary tightening policies across the globe make headlines. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.62%, 0.45%, and 0.27%, respectively, at 6:00 a.m., EST, June 23.

Yesterday, the Bank of England (BOE) raised interest rates by an unexpected 50 basis points to curb the stubborn inflation in the nation. Also, it hinted at the possibility of future rate hikes. At the same time, Turkey’s central bank doubled the interest rate to 15%, as inflation continued to soar to unprecedented heights.

In the U.S., Fed Chair Jerome Powell’s testimony in the Senate Banking Committee shed light on some of the newer banking regulations (beginning in 2024) that would affect the larger banks’ capital requirement norms. Meanwhile, speeches from other Fed officials highlighted the differing views of the FOMC members on the future rate hike decision. Even so, inflation remains far from the targeted 2% rate, and investors must brace themselves for a couple of more rate hikes.

Turning towards the market, the three major indices are on track to end this week on a negative footing, after witnessing a solid multi-week winning streak. However, the tech sector remained in focus, with iPhone maker Apple (NASDAQ:AAPL) hitting a new all-time high. Microsoft (NASDAQ:MSFT) rose nearly 2% in midday trade, while Amazon (NASDAQ:AMZN) gained 4.3% yesterday.

Elsewhere, European indices traded mixed on Friday morning, following the BOE’s unexpectedly steep interest rate hike, bringing rates to 5%. On the other hand, Britain’s consumer confidence data came in higher than expected, and retail sales figures showed a marginal rise of 0.3% in May, falling from April’s increase of 0.5%. Moreover, the Eurozone’s flash purchasing managers’ index (PMI) data for May showed a declining trend from the previous month.

Asia-Pacific Markets End Lower on Friday

Asia-Pacific indices finished trading in the red today after Japan and Singapore released their inflation figures. Japan’s core inflation print for May came in at 3.2% annually, marginally higher than the expected 3.1% figure. Following the news, Nikkei and Topix indices ended down by 1.45% and 1.38%, respectively.

At the same time, Mainland Chinese markets remain closed for trading today while Hong Kong’s Hang Seng index ended the day in the red, down 1.71%.

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