Last updated 4:05PM 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 0.85%, 1.12%, and 0.89%, respectively.
The real estate sector was the session’s laggard, as it lost 2.95%. Conversely, the communications sector was the session’s leader, with a loss of 0.04%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.486%, an increase of 3.6 basis points. In contrast, the Two-Year Treasury yield decreased, as it hovers around 4.19%. This brings the spread between them to -59 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 22.9% compared to yesterday’s expectations of 29.1%.
In addition, the market is now also assigning a 25.2% probability to a range of 4.5% to 4.75%. For reference, investors had assigned a 16.9% chance yesterday.
Last updated 2:50PM EST
The market is showing no signs of a bounce so far, as the Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) are still down about the same amount as before — 1.4% and 1.6%, respectively, while the Nasdaq 100 (NDX) is down 1.4%.
Last updated 12:25PM EST
Investors continued their stock sell-off on Friday afternoon as major indices continued to be on a downward trajectory.
Last updated 10:45 AM EST
Markets continue the downtrend in Friday morning trading as investors continued their stock sell-off as fears of a recession took hold.
First published: 6:31AM EST
Stock futures dipped early Friday morning after disappointing retail sales data fanned concerns of an impending recession.
Retail sales for November fell 0.6%, lower than the Dow Jones estimate for a 0.3% fall. The larger-than-expected decline in retail sales numbers hinted at a moderating consumer spending, indicating that inflation is affecting consumers more than the markets had factored in.
On Thursday, the S&P 500, the Dow, and the Nasdaq 100 closed 2.29%, 2.25%, and 3.37%, respectively, as a result of a sharp sell-off. Investors were convinced that a recession is in store, regardless of the second straight month of cooler inflation and a slower pace of interest rate hike in December. The market is on track to exit the week with losses.
A 50 basis-point rate hike by the Federal Reserve, and a 7.1% inflation in November did not stop the value erosion in the stock market. The interest rates are now between 4.25% and 4.5%, which was expected. The central bank is expected to keep raising interest rates through the next year until it reaches at least 5.1%. The central bank believes that this target interest rate may be restrictive enough to achieve the target inflation rate of 2%-3%.
Markets are largely expected to remain volatile till the Fed reverses its track, something that is not likely to happen in 2023.
Darden Restaurants (NYSE:DRI) is scheduled to release its earnings report before the bell on Friday. Investors will keep an eye on the commentary to gather more insights into consumer spending patterns.
Moreover, Fed leaders John Williams, Michelle Bowman, and Mary Daly are expected to give speeches at various events on Friday, providing more insights into the future path of the central bank’s monetary policy.
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