Last Updated 4:05 PM EST
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Stock indices finished today’s trading session in the red. The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) fell 0.1%, 0.61%, and 0.87%, respectively.
The communications sector (XLC) was the session’s laggard, as it lost 1.23%. Conversely, the utilities sector (XLU) was the session’s leader, with a gain of 0.88%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.65%. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.49%. This brings the spread between them to -84 basis points.
Compared to Friday, the market is pricing in a higher chance of a higher Fed Funds rate for June 2023. In fact, the market’s expectations for a rate in the range of 5.25% to 5.5% increased to 30.6% compared to Friday’s expectations of 13.6%.
In addition, the market is now also assigning a 14.2% probability to a range of 4.75% to 5%. For reference, investors had assigned a 30.7% chance Friday.
Last Updated at 1:45PM EST
Stock indices extend their losses in this afternoon’s trading session. As of 1:45 p.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are down 0.2%, 0.7%, and 0.8%, respectively.
Conversely, WTI crude oil is higher today, as it hovers around the high-$73 per barrel range. Nevertheless, the commodity’s recent weakness has caused prices at the pump to decline when compared to last week.
Indeed, the national average for regular gas was last $3.47 per gallon, down from last week’s reading of $3.508. This is significantly lower than the all-time high of $5.016 per gallon on June 14, 2022.
The highest prices can be found in Hawaii, where prices are substantially higher than the national average, at $4.907 per gallon. On the other hand, Texas is the state with the lowest gas prices, at $3.086 per gallon.
It’ll be interesting to see if this downward trend will continue going forward as the Federal Reserve looks to raise interest rates to fight inflation while oil producers lower production in order to maintain the price.
Last Updated at 11:15AM EST
Equity markets remain in the red so far in today’s trading session. As of 11:15 a.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are down 0.3%, 0.6%, and 0.6%, respectively.
Last Updated at 9:40AM EST
The major indices opened the new trading week in the red, with the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) down 0.7%, 0.5%, and 0.3%, respectively, as of 9:40 a.m. EST, Monday.
U.S. markets are expected to remain volatile this week. A stronger-than-expected jobs report released Friday upended the optimism of traders, who had earlier hoped that the Fed would likely reduce the pace of interest rate hikes in the coming months. Further, traders are cautious ahead of Fed Chair Powell’s speech before the Economic Club of Washington on Tuesday, February 7.
Three other major economic events that will shape this week’s investor sentiment include the United States Consumer Credit report on February 7, U.S. Initial Jobless Claims on February 9, and the University of Michigan Preliminary Consumer Sentiment Index on February 10.
On a positive note, a report by the WSJ citing Powell’s speech from last week noted that the reserves of a majority of American state governments are flooded with cash. This increases the chances of recovering smoothly from a recessionary environment.
On the earnings front, notable companies reporting this week include Disney (DIS), BP (BP), PepsiCo (PEP), Uber (UBER), Chipotle Mexican Grill (CMG), and AbbVie (ABBV).
European indices opened the week in negative territory as traders stumbled over global economic data and the outlook. Notably, the euro zone’s January PMI (purchasing managers’ index) number released Friday showed that business activity was returning to growth in January, the first sign of positivity in the past six months.
Asia-Pacific Markets Slump on the U.S. Jobs Report
Major indices in the Asia-Pacific markets ended the day in the red on worries of further rate hikes from the U.S. Federal Reserve. Hong Kong’s Hang Seng index was down 2.02%. Meanwhile, Mainland China’s Shanghai Composite and Shenzhen Component ended down 0.76% and 0.79%, respectively.
At the same time, both of Japan’s major indices remained positive with Japan’s Nikkei 225 up 0.67% and Topix up 0.45%.
India’s Nifty 50 Index (down 0.62%) continues to be volatile as stocks under the Adani Group banner sink another day on short seller Hindenburg’s report.
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