Last Updated 4:10 PM EST
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Stock indices finished today’s trading session in the green. The Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) gained 0.76%, 1.19%, and 2.18%, respectively.
The utilities sector (XLU) was the session’s laggard, as it gained 0.04%. Conversely, the technology sector (XLK) was the session’s leader, with a gain of 2.3%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.52. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.24%. This brings the spread between them to -72 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% to 5.25% increased to 37.9% compared to Friday’s expectations of 34.3%.
In addition, the market is now also assigning a 6.2% probability to a range of 4.5% to 4.75%. For reference, investors had assigned an 11.2% chance Friday.
Last Updated at 3:00PM EST
Stocks are in the green heading into the final hour of today’s trading session. As of 3:00 p.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are up 0.5%, 0.9%, and 1.8%, respectively.
In addition, WTI crude oil continues to hover above $80 per barrel. Although the commodity is well off its yearly highs, its recent uptrend has led to prices at the pump gaining upward momentum across the country.
Indeed, the national average for regular gas was last $3.423 per gallon, up from last week’s reading of $3.305. Still, this remains significantly lower than the all-time high of $5.016 per gallon on June 14.
The highest prices can be found in Hawaii, where prices are substantially higher than the national average, at $4.942 per gallon. On the other hand, Texas is the state with the lowest gas prices, at $3.046 per gallon.
It’ll be interesting to see if this upward trend will continue 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 11:30AM EST
The stock market rally is gaining momentum in the later stages of the morning trading session, thanks to optimism about slower rate hikes. As of 11:30 a.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are up 1%, 1.3%, and 2%, respectively.
The materials sector (XLB) is the laggard so far, as it is up 0.3%. Conversely, the technology sector (XLK) is the session’s leader, with a gain of 2.4%.
Meanwhile, bond yields are higher as the U.S. 10-Year Treasury yield is now hovering around 3.52%. This represents an increase of more than three basis points from the previous close.
Similar movements can be seen with the Two-Year yield, which is now at 4.22%. As a result, the spread between the 10-Year and Two-Year U.S. Treasury yields is still negative, as it currently sits at -70 basis points.
Last updated: 9:46AM EST
Stock markets opened higher at the beginning of the week as investors assessed whether there could be a slowdown in rate hikes as the FOMC meeting approaches.
The Dow Jones Industrial Average (DJIA) increased 0.07% while the S&P 500 (SPX) was up 0.24%, as of 9:46 a.m. EST, Monday. Meanwhile, the Nasdaq 100 (NDX) advanced 0.6%
First published: 5:58AM EST
Stock futures were mixed early Monday morning as investors mulled over next week’s interest rate hike decision by the Federal Reserve. Traders are also bracing themselves for a week of key earnings.
Futures on the Dow Jones Industrial Average (DJIA) inched up 0.04% while those on the S&P 500 (SPX) fell 0.06%, as of 5:58 a.m. EST, Monday. Meanwhile, the Nasdaq 100 (NDX) futures fell back 0.04%.
The major averages of the U.S. stock market rallied remarkably on Friday, buoyed by the cooling inflation and the hope that the tightening of monetary policy is inching toward the end. Experts believe that despite an expected period of challenge in the middle of the year, markets are looking forward to a sustained economic recovery.
The S&P 500, the Dow, and the Nasdaq 100 ended Friday with gains of 1.89%, 1%, and 2.86%, respectively. All the averages are up this year thus far.
In recent weeks, Federal Reserve representatives have been more and more transparent about slowing down the pace of interest rate hikes in the upcoming FOMC round (January 31 and February 1). In fact, Fed Governor Christopher Waller clearly stated his support for a 25 basis-point hike this time. Additionally, the CME Group’s data indicated that the chance of a quarter-point hike is 99.7%.
This week is a blackout week with no speeches or updates from the Fed. However, a Fed-favorite data point —the Personal Consumption Price Index — is due out Friday. The report will give some insights into how households are handling the economic changes.
Also, several key earnings are expected to keep traders busy parsing how the companies stand ahead of a deeper downturn this year. About 40% of the Dow members are set to report this week. Microsoft (NASDAQ:MSFT), IBM (NASDAQ:IBM), Visa (NYSE:V), Tesla (NASDAQ:TSLA), and Mastercard (NYSE:MA) are some of the earnings that need to be watched out for this week.
Asia Markets Slow Amid Lunar New Year
Elsewhere, most markets were closed in Asia for the Lunar New Year holiday. The Shanghai markets will be closed for the whole week.
Tokyo’s Nikkei 225 index advanced 1.1% on Monday, after the tech sector rallied on Friday on easing worries about interest rate hikes in the U.S.
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