Last Updated 4:05 PM EST
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 0.41%, 0.57%, and 0.3%, respectively.
The consumer discretionary sector (XLY) was the session’s laggard, as it lost 0.3%. Conversely, the utilities sector (XLU) was the session’s leader, with a gain of 3.16%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 3.38%, a drop of more than five basis points. Similarly, the Two-Year Treasury yield also decreased, as it hovers around 3.77%.
The Atlanta Federal Reserve updated its latest GDPNow reading, which allows it to estimate GDP growth in real time. The “nowcast” becomes more accurate as more economic data is released throughout the quarter. Currently, it estimates that the economy will expand by about 3.2% in the first quarter.
This is unchanged from the previous estimate, which can be attributed to the recent release of the existing-home sales report from the National Association of Realtors and this morning’s advance manufacturing report from the U.S. Census Bureau.
Nevertheless, inflation continues to be a problem around the world. Therefore, it’ll be interesting to see what the actual GDP growth will be and how it’ll change going forward as higher rates start to impact the economy.
Last updated: 2:36PM EST
Stocks have cut their losses in afternoon trading and are now slightly positive. As of 2:36 p.m. EST, the Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) are up 0.2% and 0.3%, respectively. Meanwhile, the Nasdaq 100 (NDX) is slightly down 0.1%.
Last updated: 1:24PM EST
Stocks have cut their losses in afternoon trading but still remain slightly negative. As of 1:24 p.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are down 0.1%, 0.1%, and 0.4%, respectively.
Last updated: 11:05AM EST
Stocks are in the red so far in today’s trading. As of 11:05 a.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are down 0.5%, 0.4%, and 0.3%, 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 49.3, which was higher than the expected 47.
It’s worth noting that this indicator is higher than last month’s reading of 47.3 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: 9:46AM EST
Stocks opened in the red on Friday morning threatening to wipe out any weekly gains as bank concerns continued to persist after a jump in Deutsche Bank’s credit default swaps.
The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.65%, 0.73%, and 0.7%, respectively, at 9:46 a.m. EST, March 24.
Meanwhile, the durable goods data indicated that orders for manufactured goods in the U.S. fell by 1% in February as a result of falling demand for passenger planes and new cars. This drop in orders was more than economists’ expectations of a 0.3% decline. Orders increased year-over-year by 2.3% in the month of February – the smallest year-over-year rise since 2020.
Usually, orders for durable goods increase in an expanding economy and shrink in a contracting one. Even as the year-over-year rise in orders for durable goods is a good sign, it is evident that they are rising at a much slower pace.
First published: 6:19AM EST
U.S. futures are trading lower on Friday morning as traders assess the decision of the Fed’s quarter-point rate hike amid the banking crisis. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down 0.48%, 0.75%, and 0.83%, respectively, at 5:10 a.m. EST, March 24.
The banking crisis has taken center stage again after the markets digested the Fed’s monetary decision and felt relieved at the possibility of a pause in the future. Treasury Secretary Janet Yellen’s latest remarks before the House Panel yesterday sounded optimistic. Yellen reassured the audience that the Fed will take the necessary steps to backstop struggling regional banks. This is in contrast to her comments about not providing “blanket insurance” to banks the previous day.
Remarkably, German lender Deutsche Bank (NYSE:DB) (DE:DBK) sparked fear of a banking contagion in Europe. The cost of insurance against Deutsche Bank’s credit default swaps rose to 173 basis points on Thursday. This spooked investors as they feared more banks may be at risk owing to the quality of additional Tier 1 (AT1) bonds. DB stock is down more than 6% in pre-market trading in the U.S. and is down 8.8% in the German exchange as of the last check.
European indices are beaten down today owing to Deutsche Bank’s news. Traders are worried about the repercussions of the AT1 bonds on the banking sector. Following the U.S. interest rate hike, the Bank of England also increased rates by 25 basis points on March 23 to fight U.K.’s rising inflation.
Asia-Pacific Markets End Lower
A majority of Asia-Pacific markets ended the trading session in the red today, following the fear of a banking debacle.
Hong Kong’s Hang Seng and China’s Shanghai Composite indices ended the day lower by 0.67% and 0.64%, respectively, while the Shenzhen Component ended up 0.40%.
Further, Japan’s Nikkei and Topix indices finished the trading session down 0.13% and 0.10%, respectively.
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