Last Updated 4:04 PM EST
Stock indices finished today’s trading session in the red as the Federal Reserve chose not to raise interest rates. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 1.46%, 0.94%, and 0.22%, respectively.
Furthermore, the U.S. 10-Year Treasury yield increased to 4.37% while the Two-Year Treasury yield also jumped, as it hovers around 5.16%. This marks a new 52-week high.
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 5.5% to 5.75% increased to 39.9% compared to yesterday’s expectations of 35.7%.
This can be attributed to the Federal Reserve’s economic projections, which suggest that the central bank will hike rates one more time in 2023.
Last updated: 2:00PM EST
Stock indices are mixed following the Fed’s interest rate decision. The Nasdaq 100 (NDX) and the S&P 500 (SPX) are down 0.3% and 0.02%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) is up 0.4%.
Last updated: 11:30AM EST
Stock indices are mixed so far in today’s trading session ahead of the Fed’s interest rate decision. On Wednesday, the Mortgage Bankers Association released its weekly report for the U.S. 30-year mortgage rate. The mortgage rate increased to 7.31% compared to last week’s reading of 7.27%.
Despite the slight increase in rate, the number of mortgage applications increased week-over-week by 5.4%, following last week’s decrease of -0.8%.
However, mortgage application volume is down substantially on a year-over-year basis, with the Mortgage Market Index at 192.1 compared to 264.7 on September 21, 2022.
Last updated: 9:30AM EST
Stocks opened higher on Wednesday morning as traders and investors awaited the FOMC interest rate decision and Powell’s comments. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.04% and 0.17% each, respectively, at 9:30 a.m. EST, September 20.
First published: 4:31AM EST
U.S. Futures are hovering around the flatline on Wednesday morning as traders anticipate the Federal Open Market Committee’s (FOMC) interest rate decision today. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are marginally up by 0.01%, 0.02%, and 0.03%, respectively, at 4:20 a.m. EST, September 20. In the meantime, WTI crude oil futures are trending down today, near $90.61 as of the last check.
Although several experts and markets at large expect the Fed to keep the interest rate steady, the Fed’s tone (hawkish/dovish) for the future course will drive the markets one way or another. Fed Chair Jerome Powell’s speech will take prime focus today as he shares the Fed’s view on the health of the U.S. economy. Currently, the federal funds rate is at a 22-year high, between 5.25% and 5.50%.
Also, shares of grocery delivery company Instacart (NASDAQ:CART) closed 12.3% higher on its stock market debut on September 19 after jumping 40% in initial trading hours. In other major news, legacy automaker Ford Motor (F) has negotiated a tentative deal with the Canadian labor union Unifor, effectively averting the looming threat of a second strike. Further, shares of aftermarket automotive parts retailer AutoZone (AZO) fell yesterday despite exceeding Q4FY23 expectations.
Elsewhere, the U.K.’s inflation in August fell to 6.7%, below the expected 7% annual jump. Also, the month-on-month CPI reading came at 0.3%, far below the expected 0.7% rise. The news pushed up stocks of all leading market indices in Europe.
Asia-Pacific Markets End Mixed on Wednesday
Asia-Pacific indices finished mixed today. The People’s Bank of China kept the prime lending rates for both one-year and five-year loans unchanged for September.
Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices ended down by 0.62%, 0.52%, and 0.53%, respectively.
Similarly, Japan’s Nikkei and Topix indices finished lower by 0.66% and 1%, respectively. Japan’s trade deficit narrowed in August on an annual basis, while imports and exports witnessed a smaller fall than anticipated.
Interested in more economic insights? Tune in to our LIVE webinar.