Last Updated 4:00 PM EST
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Stock indices finished today’s trading session mixed as the S&P 500 (SPX) and the Nasdaq 100 (NDX) gained 0.45% and 1.11%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) fell 0.09%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.44%. The Two-Year Treasury yield also decreased, as it hovers around 3.91%. This brings the spread between them to -47 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 4.25% to 4.5% increased to 52% compared to yesterday’s expectations of 40.8%.
In addition, the market is now also assigning a 0% probability to a range of 4.75% to 5%. For reference, investors had assigned a 10.1% chance yesterday.
Last updated: 3:27 PM EST
Stocks are in the green as they gain momentum into the close. As of 3:27 p.m. EST, the S&P 500 (SPX) and the Nasdaq 100 (NDX) are up 0.6% and 1.3%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) is flat.
Last updated: 1:52 PM EST
The Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) are both trading lower as we approach the final two hours of today’s trading session. The former is down 0.8%, while the latter fell 0.3%. Conversely, the Nasdaq 100 (NDX) is up 0.3%.
However, U.S. Treasury yields also slipped, as the 10-Year yield hovers around 3.44%, a decline of more than eight basis points. This suggests that there is fear in the market and that investors are worried about higher interest rates slowing down the economy.
Last updated: 11:05 AM EST
Stock indices have cut their early gains as the Dow Jones Industrial Average (DJIA) turned negative. Indeed, it is down by 0.3% at the time of writing. On the other hand, the S&P 500 (SPX) and the Nasdaq 100 (NDX) are still clinging on to their gains, as they’re up 0.05% and 0.5%, respectively.
First published: 5:03 AM EST, Last updated: 9:30 AM EST
U.S. stock indices are trending higher this morning as investor focus shifts to the inflation print that was released today. The S&P 500 (SPX), the Dow Jones Industrial Average (DJIA), and the Nasdaq 100 (NDX) are up 0.7%, 0.5%, and 0.8%, respectively, at 9:30 a.m. EST, May 10.
The Bureau of Labor Statistics released April’s Consumer Price Index (CPI), and inflation in April came at the lowest in the past two years and in line with estimates.
The Federal Reserve closely watches the CPI print to analyze if the previous rate hikes have had any impact on the economy. The Fed will decide its next rate hike decision based on April’s CPI data and other macro factors, including the status of the labor market, at its next FOMC meeting scheduled for June 13-14.
Meanwhile, Wall Street is beginning to focus on the U.S. debt ceiling issue. President Biden held a meeting with congressional leaders yesterday, but comments from both sides of party lines were a stalemate.
Other important economic data points that will be released this week include the Producer price index (PPI) data and the weekly initial jobless claims on May 11. Also, traders are closely listening as Federal officials speak at various committees this week to gauge any cues on the economic outlook and monetary policy.
On the earnings front, Warren Buffett’s favorite oil and gas pick, Occidental Petroleum (NYSE:OXY) missed estimates on both the top and bottom lines due to lower energy prices, dragging the shares down in post-market trade yesterday. On the other hand, shares of travel & leisure company Airbnb (NASDAQ:ABNB) are down over 13% in pre-market trading today despite beating Q1FY23 estimates yesterday. Meanwhile, electric vehicle (EV) maker Rivian’s (NASDAQ:RIVN) stock is up 6% in pre-market trade following mixed Q1FY23 results posted after the market closed yesterday.
Entertainment giant Walt Disney (NYSE:DIS) is reporting its Q2FY23 results today after close. In the meantime, shares of Chinese EV manufacturer Li Auto (NASDAQ:LI) are up in pre-market trade as the company posted better-than-expected Q1FY23 results today.
Elsewhere, European indices are trading in the red today in anticipation of U.S. CPI data. Further, traders are also jittery as the Bank of England is due to announce its rate hike decision tomorrow, May 11.
Asia-Pacific Markets Mostly in Red
Most Asia-Pacific indices ended the trading session in negative territory today, ahead of the U.S. key inflation print.
Hong Kong’s Hang Seng and China’s Shanghai Composite indices ended the trading session down by 0.53% and 1.15%, respectively, while the Shenzhen Component index ended up by 0.14%.
At the same time, Japan’s Nikkei and Topix indices ended the trading session down by 0.41% and 0.55%, respectively.
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