Stock indices finished today’s trading session mixed. Indeed, the S&P 500 (SPX) and the Nasdaq 100 (NDX) fell 0.01% and 0.4%, respectively. On the other hand, the Dow Jones Industrial Average (DJIA) gained 0.23%. The technology sector (XLK) was the session’s laggard, as it lost 1.35%. Conversely, the communication sector (XLC) was the session’s leader, with a gain of 1.58%.
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Furthermore, the U.S. 10-Year Treasury yield decreased to 3.86%, a drop of three basis points. Similarly, the Two-Year Treasury yield also decreased, as it hovers around 4.83%.
The Atlanta Federal Reserve updated its latest GDPNow reading, which allows it to estimate GDP growth in real-time. The “nowcast” becomes more accurate as more economic data is released throughout the quarter. Currently, it estimates that the economy will expand by about 2.4% in the second quarter.
This is unchanged from its previous estimate, which can be attributed to recent releases from the U.S. Census Bureau and the National Association of Realtors.
Last updated: 2:54PM EST
Stock indices are mixed at the time of writing after the Federal Reserve raised interest rates to the highest level since 2001. However, stocks have been gaining ground after Jerome Powell said that future rate hikes will be dependent on data. As a result, the market is interpreting this as a potential pause in rate hikes.
Last updated: 11:30AM EST
Stocks are under pressure so far in today’s trading as investors await the Fed’s interest rate decision. Earlier today, the Census Bureau released its United States New Home Sales data for June, which came in at 697,000. For reference, forecasters were expecting a print of 725,000. This was also lower than last month’s report of 715,000.
In terms of house prices, the median sales price was $415,400 in June compared to $416,300 in May. Interestingly, the average sales price increased in June from $487,300 to $494,700.
Furthermore, U.S. Building Permits beat expectations, with a print of 1.441 million compared to the forecast of 1.440 million. Nevertheless, this was a decrease from the prior month’s report, which came in at 1.496 million, equating to a drop of -3.7% month-over-month. It’s worth noting that the number of building permits issued each month is on an overall decline which began in March 2022.
Last updated: 9:30AM EST
Stocks were down at open on Wednesday ahead of the Fed’s interest rate decision, with the Nasdaq 100 (NDX) and the Dow Jones Industrial Average (DJIA) down by 0.31% and 0.03%, respectively, while the S&P 500 (SPX) fell by 0.2%, at 9:30 a.m., EST, July 26.
First published: 4:15AM EST
U.S. Futures are trading mixed on Wednesday morning as all eyes are on the Federal Reserve’s interest rate decision, due today. Futures on the Nasdaq 100 (NDX) and Dow Jones Industrial Average (DJIA) are down by 0.02% and 0.03%, respectively, while those on the S&P 500 (SPX) are up by 0.09% at 4:00 a.m., EST, July 26.
The FOMC meeting culminates today, after which the Fed will release its monetary policy decision. Markets have priced in a 25-basis point hike. This will bring the Fed’s policy rate to a range of 5.25% to 5.5%. Most importantly, traders will keenly listen to Fed Chair Jerome Powell’s speech to gauge the Fed’s stance on the future rate hike path and understand the overall health of the economy.
Remarkably, the Dow finished its 12th straight session of gains yesterday, while the SPX marked its yearly high in intraday trading on July 25. The three major averages have performed well this month, thanks to the excitement surrounding the earnings season, which has turned out to be fairly strong so far. The benchmark crude WTI futures continue trading above the $79 level as demand for oil and gas remains hot amid supply shortages.
Reporting before the bell today are beverage king Coca-Cola (KO), aircraft maker Boeing (BA), and telecom giant AT&T (T). Post-market close, tech giant Meta Platforms (META), restaurant chain Chipotle (CMG), and Barbie maker Mattel (MAT) will report earnings.
Shares of Alphabet (GOOGL) surged in after-hours trading yesterday following a solid quarterly beat. On the other hand, Microsoft’s (MSFT) stock fell in extended trading despite beating estimates. MSFT’s Azure segment reported slow growth, and the company’s Q3 guidance fell short of expectations. Likewise, shares of SNAP (SNAP) plunged in after-hours trading on a weaker outlook, despite posting a quarterly beat.
Elsewhere, European indices are trading mixed this morning, amid a mixed slate of earnings releases. Traders eagerly await the Fed’s interest rate decision today, followed by the European Central Bank’s (ECB) monetary policy decision due Thursday.
Asia-Pacific Markets Mostly in Red
A majority of Asia-Pacific indices finished in the red on Wednesday as traders gear up for the Fed’s interest rate decision.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices finished lower by 0.32%, 0.26%, and 0.47%, respectively.
Similarly, Japan’s Nikkei and Topix indices ended down by 0.04% and 0.10%, respectively.
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