Last Updated 4:05 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 1.04%, 1.44%, and 2.49%, respectively.
The consumer discretionary sector was the session’s laggard, as it lost 2.55%. Conversely, the healthcare sector was the session’s leader, with a loss of 0.12%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.68%. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.28%. This brings the spread between them to -60 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% to 5.25% decreased to 29.2% compared to yesterday’s expectations of 23.1%.
In addition, the market is now also assigning a 17.4% probability to a range of 4.5% to 4.75%. For reference, investors had assigned a 25.4% chance yesterday.
Last Updated 12:50AM EST
The stock market sell-off doesn’t appear to be slowing down halfway into today’s trading session. As of 12:50 p.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are down 2%, 2.5%, and 3.6%, respectively.
Last Updated 11:03AM EST
Stock indices are in the red as the market’s sell-off gains momentum. As of 11:03 a.m. EST, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are down 1.4%, 1.8%, and 2.8%, respectively.
WTI crude oil remains below $80 per barrel as investors weigh the impact of production decreases from oil-producing countries and a softer demand outlook caused by recession fears.
Meanwhile, bond yields are little changed, as the U.S. 10-Year Treasury yield is now hovering around 3.65%. This represents a decrease of more than one basis point from the previous close.
In addition, the Two-Year yield 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 -57 basis points.
Markets Open in the Red As Sell-Off Continues
Last updated 9:37AM EST
Markets opened in the red on Thursday morning as investor worries regarding a possible recession took precedence.
Last updated 8:43AM EST
The jobless claims data for the week ending December 17 was released today. This data indicated that initial jobless claims increased to 216,000 on a seasonally adjusted basis, up by 2,000 from the prior week but still lower than median forecasts of 220,000.
In Q3, the economic growth rate for the U.S. was raised to 3.2% from an earlier 2.9%
Futures on the Dow Jones Industrial Average (DJIA) lost 0.5% following the jobless claims data, while those on the S&P 500 (SPX) slipped 0.6%, as of 8.43 AM EST, Thursday. Meanwhile, the Nasdaq 100 (NDX) futures declined 0.9%.
First published 8:15AM EST
Stock futures were in the red in the early hours of Thursday, as traders settled back after a sharp rally on Wednesday.
Micron Technology (NASDAQ:MU) fell 3% in the pre-market trading Thursday after posting dismal quarterly results.
The market spiked yesterday, led by solid gains in the energy sector and positive consumer sentiment data for December. At the end of the session, the S&P 500, the Dow, and the Nasdaq 100 clocked gains of 1.49%, 1.6%, and 1.48%, respectively.
With only a little more than a week remaining in 2022, a Santa Claus rally that typically graces the market around this time every year is less likely to happen this year. There are several possible reasons behind this. The Federal Reserve Chairman, Jerome Powell, remains hawkish in his stance, saying that there is still a long way to go before reaching the desirable inflation levels. The job market has not yet slowed down as much as the Fed desires, and this is a significant obstacle in the path to recovery.
The rest of the year is largely expected to be quiet, with the Christmas holiday round the corner. The only major economic data that is expected this week and next is the weekly initial jobless claims, which is one of the data that the Fed keeps a close watch on to understand the weekly trends in the job market. Last week’s jobless claims data will be out later on Thursday.
The market is expected to remain volatile, going into 2023, with short-term spikes here and there but nothing major is expected to move the market until the new year begins.
Stocks are on track to finish the month lower than they began. So far in December, the Dow has lost 3.51%, the S&P 500 4.94%, and Nasdaq Composite, 6.62%. For the year, all three major averages are expected to post their worst year since 2008.
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