Last Updated 4:03 PM EST
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 1.65%, 1.84%, and 1.8%, respectively.
The financial sector (XLF) was the session’s laggard, as it lost 4.09%. Conversely, the utility sector (XLU) was the session’s leader, with a loss of 0.8%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.92%. Similarly, the Two-Year Treasury yield also decreased, as it hovers around 4.89%. This brings the spread between them to -97 basis points.
Compared to yesterday, the market is pricing in a higher chance of a lower Fed Funds rate for June 2023. In fact, the market’s expectations for a rate in the range of 5.5% to 5.75% decreased to 49.3% compared to yesterday’s expectations of 54.4%.
In addition, the market is now also assigning a 32.7% probability to a range of 5.25% to 5.5%. For reference, investors had assigned an 18% chance yesterday.
Last updated: 1:55PM EST
Today’s downward momentum is picking up steam as major indices sit near their intraday lows. As of 1:55 p.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are down 0.8%, 0.9%, and 0.9%, respectively.
Last updated: 12:20PM EST
Stocks have given up their earlier gains halfway into today’s trading session. As of 12:20 p.m. EST, the Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) are both near the flatline. Meanwhile, the Nasdaq 100 (NDX) has cut its gains to 0.35%.
Last updated: 11:15AM EST
Stocks are in the green 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 up 0.2%, 0.2%, and 0.7%, respectively.
Last updated: 9:39AM EST
U.S. stocks opened in the green on Thursday morning even as the weekly jobless claims report for the week ending March 4 indicated that initial jobless claims rose by 21,000 to 211,000 – the highest level since late December.
The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up 0.3%, 0.34%, and 0.4%, respectively, at 9:39 a.m. EST, March 9.
First published:5:30AM EST
U.S. major indices opened on a positive note on Thursday, following a another speech from Fed Chair Powell in front of the House Financial Services Committee, last evening. Although Powell stated that no firm decision on the rate hike has been made, his speech carried a strong hawkish tone.
The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up 0.3%, 0.3%, and 0.25%, respectively, at 9:30 a.m. EST, March 9.
Further, stronger-than-expected jobs data for February pushed traders to believe that a higher interest rate hike is more likely in the upcoming Federal Open Market Committee (FOMC) meeting, scheduled for March 21-22, 2023. Markets are factoring in a 50 basis point rate hike at the next FOMC meeting. Also, the market’s targeted terminal rate expectation has now jumped to between 5.50% to 5.75%.
U.S. initial jobless claims will be released today for the week ending March 3. Moreover, February’s unemployment data will be released on March 10, and both these economic data points will determine the Fed’s future rate actions.
On the earnings front, Chinese e-commerce player JD.com (NASDAQ:JD) and American retailer BJ’s Wholesale Club (NYSE:BJ) report results today.
Meanwhile, European indices are trading in the red today, in anticipation of a higher rate hike by the U.S. Federal Reserve.
Asia-Pacific Markets Traded Mixed
Asia-Pacific markets traded mixed today, as markets digested hawkish comments from the U.S. Fed Chair. On the other hand, signs of cooling inflation in China gave some relief to investors. For February, China’s consumer price index (CPI) rose only 1% year-over-year, the slowest since February 2022.
Following a volatile day, Hong Kong’s Hang Seng, China’s Shanghai Composite, and Shenzhen Component indices ended the day down 0.63%, 0.22%, and 0.14%, respectively.
On the other hand, Japan’s Nikkei and Topix indices ended the day up 0.63% and 0.97%, respectively, as the Bank of Japan began its two-day monetary policy meeting today.
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