Last Updated 4:00 PM EST
Stock indices finished today’s trading session in the red. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 fell 2.06%, 2%, and 2.41%, respectively.
The consumer discretionary sector (XLY) was the session’s laggard, as it lost 3.3%. Conversely, the consumer staples sector (XLP) was the session’s leader, with a loss of 0.3%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.95%. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.73%. This brings the spread between them to -78 basis points.
Compared to yesterday, 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 59% compared to Friday’s expectations of 52.9%.
In addition, the market is now also assigning a 23.7% probability to a range of 5% to 5.25%. For reference, investors had assigned a 34.4% chance yesterday.
Last updated: 2:15PM EST
Stocks are in the red so far in today’s trading. As of 2:15 p.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are down 2%, 2%, and 2.2%, 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 47.8, which was higher than the expected 47.1.
It’s worth noting that this indicator is higher than last month’s reading of 46.9 and has been trending up over the past three months. Nevertheless, it has been in an overall downtrend ever since its peak in August 2021, when it hit a high of 63.4.
Last Updated: 12:22PM EST
Stock indices are in the red so far in today’s trading session. As of 12:22 p.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (DJIA) are down 1.7%, 1.7%, and 1.9%, respectively
On Tuesday, the National Association of Realtors released its U.S. Existing Home Sales report, which measures the change in sales of existing residential buildings during the previous month on an annualized basis. Existing home sales came in at 4 million for the month of January, below the expected 4.1 million.
This figure was the lowest reading since June 2020, as existing home sales declined month-over-month by -0.7%, on top of the -2.2% decline in December. Indeed, this represents the 12th straight month of declines, as higher interest rates continue to make homeownership difficult. On a year-over-year basis, sales fell 38.4%.
It is likely that this downward trend will continue as the Federal Reserve continues to hike interest rates to combat inflation.
Last updated: 10:28AM EST
The Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are down 1.7%, 1.4%, and 1.4%, respectively, as of 10:28 a.m. EST, Tuesday.
Last updated: 9:42AM EST
Stocks opened in the red on Tuesday as investors digested the earnings of major retailers. While Home Depot (HD) reported mixed Q4 results and Walmart’s (WMT) earnings exceeded expectations, it was both the retailers’ muted outlooks that left investors disappointed.
The Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are down 0.98%, 0.83%, and 0.8%, respectively, as of 9:42 a.m. EST, Tuesday.
First published: 5:31AM EST
U.S. stock futures reopened in the red this morning after the President’s Day holiday on February 20. Markets are expected to remain volatile this week on account of economic data reports and earnings results from a few major companies.
Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) are down 1.24%, 0.90%, and 0.67%, respectively, as of 4:15 a.m. EST, Tuesday.
During the last week, higher-than-expected inflation figures dragged down traders’ sentiment. Markets are baking in higher chances of further rate hikes in 2023 and expect inflation to remain at elevated levels. Treasury yields also rose to record highs last week as fears of recession creep in.
This week, traders await the latest gross domestic product (GDP) figures as well as the minutes from the most recent FOMC meeting, and U.S. existing home sales numbers.
On the earnings front, markets keenly await results from retail giants Walmart (NYSE:WMT) and Home Depot (NYSE:HD), due to report today. The results will give a cue on investor spending behavior in the inflationary environment. Markets could witness positive momentum if these companies report outstanding results.
European indices are also trading in the red today following growing concerns about the Fed’s hawkish monetary policy.
Asia-Pacific Markets Traded Mixed
Asia-Pacific market indices traded mixed today as investors weigh in on economic data and the future course of interest rate hikes. Hong Kong’s Hang Seng closed down 1.71% while China’s Shanghai Composite and Shenzhen Component indices ended the day in the green, up 0.49% and 0.37%, respectively.
At the same time, Japan’s Nikkei and Topix ended the day down 0.21% and 0.11%, respectively.
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