Last Updated 1:05 PM EST
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Stock indices finished today’s trading session mixed. The S&P 500 and the Nasdaq 100 fell 0.03% and 0.7%, respectively. Meanwhile, the Dow Jones Industrial Average climbed 0.45%
The communications sector was the session’s laggard, as it lost 0.59%. Conversely, the healthcare sector was the session’s leader, with a gain of 0.65%.
Furthermore, the U.S. 10-Year Treasury yield increased to 3.7%, an increase of more than three basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 4.47%. This brings the spread between them to -77 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 4.75% to 5% increased to 30.4% compared to last week’s expectations of 27.5%.
In addition, the market is now also assigning a 19% probability to a range of 5.25% to 5.5%. For reference, investors had assigned a 22.5% chance last week.
Stock Indices are Mixed to Start the Trading Day
Last Updated 10:00AM EST
Stock indices are mixed to start today’s trading session. As of 10:00 a.m. EST, the S&P 500 and the Dow Jones Industrial Average are up 0.1% and 0.4%, respectively. On the other hand, the Nasdaq 100 fell 0.4%,
The technology sector (XLK) is the laggard so far, as it is down 0.3%. Conversely, the utilities sector (XLU) is the session’s leader with a gain of 0.8%.
WTI crude oil remains below $80 per barrel as investors weigh the impact of potential production increases from oil-producing countries, along with a softening outlook that’s being caused by recession fears and China’s COVID-19 policies.
Meanwhile, bond yields are higher to start the day, as the U.S. 10-Year Treasury yield is now hovering around 3.74%. This represents an increase of more than seven basis points from the previous close.
Similar movements can be seen with the Two-Year yield, which is now at 4.5%. As a result, the spread between the 10-Year and Two-Year U.S. Treasury yields is still negative, as it currently sits at -76 basis points.
Futures Mixed as Black Friday Begins
First Published 7:12AM EST
U.S. stock futures were mixed early Friday morning as investors prepare for a holiday-shortened trading session. The market will close at 1 p.m. EST today.
Futures on the Dow Jones Industrial Average (DJIA) lost 0.17%, while those on the S&P 500 (SPX) lost 0.11%, as of 6.58 a.m. EST, Friday. Meanwhile, the Nasdaq 100 (NDX) futures advanced 0.15%.
Meanwhile, U.S. Treasury yields dipped early on Friday in response to the Fed’s positive tone.
Markets were closed on Thursday on the occasion of Thanksgiving. The week is on track to close on a positive note.
Earlier this week, the Federal Reserve hinted at the possibility of a slowing pace of interest rate hikes. This buoyed investor confidence, and major stock indexes ended Wednesday’s regular session in the green. The S&P 500, the Dow, and the Nasdaq 100 clocked gains of 0.59%, 0.28%, and 0.97%, respectively.
Moreover, Friday also marks the discount day of Black Friday, which is expected to be a good day for retail stocks.
Meanwhile in China, the number of infections surpassed 31,000 on Wednesday, outpacing mid-April’s tally of 29,317 which had sent Shanghai on lockdown. The number was calculated by CNBC’s Wind Information.
