NEW YORK (Archyde.com) – Wall Street indexes opened lower on Monday, pressured by the performance of high-growth companies, with higher Treasury yields and ahead of inflation data due tomorrow and may support a more hawkish stance from the Federal Reserve (the US Central Bank). .
The Dow Jones Industrial Average fell 90.9 points, or 0.26 percent, to open at 34,630.27.
The Standard & Poor’s 500 index opened down 25.6 points, or 0.57 percent, at 4,462.64, while the Nasdaq Composite Index fell 163.7 points, or 1.19 percent, to 1,3547,293 at the opening bell.
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US stocks
A shifting tone from the “reserve” confuses “Wall Street”
written by Alexandra Hartman Editor-in-Chief
US stocks fell during the week, the S&P 500 lost more than 1.27% and the Nasdaq 3.86%, while the Dow Jones fell 0.28%.
The market moves came as investors reacted to a shifting tone by the Federal Reserve, indicating that it will act more aggressively to fight inflation.
In the weekend’s session, the Dow Jones rose 137.55 points, or 0.4%, to 34,721.12 points, the Standard & Poor’s fell 0.27% to 4488.28 points, and the Nasdaq fell 1.34% to 13711.00 points.
The yield on the benchmark US 10-year Treasury bond rose to a three-year high of 2.73%, which helped lift the Standard & Poor’s Banking Sector Index, which fell on Thursday to its lowest level in 13 months.
Shares of JPMorgan Chase, Bank of America, Citigroup and Goldman Sachs Group rose.
Comments by Lyle Brainard and Vital Knowledge’s Adam Crisavoli wrote: “We still believe that nothing really significant has happened this week except for Fed Governor Lyle Brainard’s comments, Tuesday morning, and the past several days have been a job to digest her words.”
Technology stocks led losses on Friday; Investors dumped higher-risk stocks in anticipation of higher interest rates, which would limit the group’s profit growth in the future. Chip makers such as Nvidia fell 4.5% and Micron 1.4%, the two companies struggling amid supply chain shortages and fears of an imminent recession, while Tesla, Alphabet and Apple shares fell 3%, 1.9% and 1.2%.
Shares of Robinhood, also Friday, fell by nearly 7% following Goldman Sachs lowered the rating of its trading application for sale from neutral.
The Federal Reserve, on the other hand, rebounded in the health care and consumer goods sectors during the week as investors worried regarding a slowing economy, which is heading towards stocks with stable earnings.
Meanwhile, financial sector companies such as JPMorgan and American Express rebounded, paring some of the previous week’s losses.
The Federal Reserve released minutes from its March meeting on Wednesday which revealed that policy makers plan to reduce their bond holdings by a consensus amount of regarding $95 billion. The central bank is also considering raising interest rates by 50 basis points in future meetings.
Brainard’s comments earlier this week suggested the central bank might start reducing its balance sheet “at a rapid pace” as soon as May.
Treasuries yield A shift in the Fed’s moves caused interest rates to rise; The 10-year Treasury yield hit a new three-year high on Friday; It rose above 2.7%. The price ended last week at 2.38% and started the year at 1.63%.
Unemployment benefit During the week, claims for unemployment benefits in the United States fell to the lowest level since 1968 last week, in a strong sign of improving labor market conditions in the world’s largest economy.
European stocks The European Leading Stock Index, slightly higher during the week, closed higher on Friday, ending a volatile trading week; Investors assessed the pace of the Federal Reserve’s monetary tightening plans and the news from Ukraine.
The pan-European Stoxx 600 index closed 1.2% higher on Friday, with oil and gas stocks adding 3.2% to lead the gains; Almost all major sectors and stock exchanges entered positive territory.
The past five days have been marked by volatility; As traders digested the details of the Fed’s plans to tighten its balance sheet and raise interest rates to contain hyperinflation.
Oil fluctuates and loses 1.5% in a week
Oil prices rose 2%, on Friday, but recorded their second consecutive weekly decline, following countries announced their intention to withdraw quantities of crude oil from their strategic stocks.
Brent crude futures rose at the close of $2.20, or 2.19 percent, to $102.78 a barrel.
US West Texas Intermediate crude futures rose $2.23 to $98.26.
Brent crude fell 1.5 over the course of the week, while West Texas Intermediate crude fell 1 percent. Over the past weeks, the two benchmark crudes have been subject to the most volatility since June 2020. Member countries of the International Energy Agency will withdraw 60 million barrels over the next six months, with the United States matching this amount within the framework of what it announced in March of its withdrawal of 180 million barrels from its strategic stock. (Archyde.com)
“Wall Street” .. strong gains after raising interest rates
written by Alexandra Hartman Editor-in-Chief
Major US stock indexes rose on Wednesday, boosted by optimism amid signs of progress in peace talks between Ukraine and Russia, and following the Federal Reserve’s decision to raise interest rates.
The Dow rose 518.76 points, or 1.55%, for its first three-day winning streak in more than a month. The Standard & Poor’s 500 Index is up 2.24%, while the Nasdaq is up 3.77%.
Technology stocks, which have been broadly struggling since late last year, outperformed sharply on Wednesday. Facebook’s parent meta platform shares rose 6%, while Netflix added 4%.
The prospect of peace talks between Russia and Ukraine, Chinese stimulus and a hike in US interest rates lifted stocks and US Treasury yields on Wednesday.
The positive moves in stocks come following the Federal Reserve raised its benchmark interest rate for the first time since 2018 and indicated six more increases this year, spurring a rally in stocks.
The Fed has significantly raised its forecasts for interest rate hikes and inflation in 2022, but investors seem to be taking these changes as evidence that the central bank is taking rate hikes seriously.
Treasury yields
US 10-year Treasury yields rose to 2.204% on expectations of a Fed rate hike, their highest since June 2019. The five-year yield rose to 2.149%, the highest since May 2019.
The German 10-year government bond yield rose to its highest level since November 2018 at 0.403%.
Data, on Wednesday, showed that retail sales in the United States rose 0.3% in February; As rising gasoline and food prices forced households to cut spending on other goods, which might constrain economic growth this quarter.
European stocks
European shares ended higher on Wednesday amid renewed optimism regarding progress in talks between Russia and Ukraine, and with global markets awaiting the latest monetary policy numbers and economic outlook from the US Federal Reserve.
The pan-European Stoxx 600 ended temporarily around 3%, with major bourses and almost all sectors in positive territory. Technology stocks rose more than 6.5% to lead the gains, while utilities bucked the trend, dropping 0.8%.
Japanese stocks
As for Japanese stocks, the Nikkei index rose 1.64%, and the Topix index rose 1.46%.
The US dollar fell 0.29% once morest a basket of other currencies; It traded at 98.647, and settled once morest the yen at 118.32, albeit close to a five-year high in the previous session.
Spot gold also rose 0.16% to $1,920.38 an ounce.
(Archyde.com)
European shares jump 3%… and “Wall Street” is rebounding
written by Alexandra Hartman Editor-in-Chief
Major US stock indexes rose on Wednesday, boosted by optimism amid signs of progress in peace talks between Ukraine and Russia, and ahead of an expected interest rate hike from the Federal Reserve.
The Dow Jones 500 index, or 1.5%, rose to 34,062.93 points, while the Standard & Poor’s index rose regarding 80 points, or 1.8%, to 4,347.14 points.
The Nasdaq Composite Index jumped 360 points, or 2.72%, to 13,303.37 points.
Prospects for peace talks between Russia and Ukraine, Chinese stimulus and an impending rise in US interest rates lifted stocks and US Treasury yields on Wednesday.
Treasury yields
US 10-year Treasury yields rose to 2.204% on expectations of a Fed rate hike, their highest since June 2019. The five-year yield rose to 2.149%, the highest since May 2019.
The German 10-year government bond yield rose to its highest level since November 2018 at 0.403%.
Investors are expecting the US Federal Reserve to raise interest rates by at least 25 basis points, and traders will also be watching closely for details of how it plans to end its bond-buying program.
Data, on Wednesday, showed that retail sales in the United States rose 0.3% in February; As rising gasoline and food prices forced households to cut spending on other goods, which might constrain economic growth this quarter.
European stocks
European shares ended higher on Wednesday amid renewed optimism regarding progress in talks between Russia and Ukraine, and with global markets awaiting the latest monetary policy numbers and economic outlook from the US Federal Reserve.
The pan-European Stoxx 600 ended temporarily around 3%, with major bourses and almost all sectors in positive territory. Technology stocks rose more than 6.5% to lead the gains, while utilities bucked the trend, dropping 0.8%.
Japanese stocks
As for Japanese stocks, the Nikkei index rose 1.64%, and the Topix index rose 1.46%.
The US dollar fell 0.29% once morest a basket of other currencies; It traded at 98.647, and settled once morest the yen at 118.32, albeit close to a five-year high in the previous session.
Spot gold also rose 0.16% to $1,920.38 an ounce.
(Archyde.com)