It is the first time the 2-year has had a yield that high since Nov. 1, 2007. The S&P 500 has continuously closed below its 200-day moving average since April 8, the longest such stretch since the Financial Crisis. Shares of the commerce giant were down more than 3% in midday trading. Friday’s sell-off is taking place on a "triple witching" day, which means there could be heightened market volatility as the end of the session draws nearer. The strategists said in a note that they expect the front end of the curve to lead yields higher, and that the so-called "flattening" of the curve has also peaked. The yield curve inverted when the yield of the 2-year rose above the 10-year yield.
"Energy prices are showing signs of stabilizing, despite the prevailing risk-off market tone," TD Securities said Friday in a note DotBig to clients. West Texas Intermediate crude futures, the U.S. oil benchmark, added 0.7% to trade at $85.68 per barrel on Friday.
FedEx says a drop-off in its global package delivery business has triggered a belt-tightening https://dotbig.com/ move. Dogecoin was trading just shy of 6 cents, trading more than 3% lower in the past week.
The University of Michigan’s monthly index of consumer sentiment rose 1.3 points to 59.5 from 58.2 in August. The market has grown increasingly nervous that the Fed will raise rates faster and higher than expected to get inflation under control. Stocks had been on a four-day winning streak prior to Tuesday’s plunge. One strategist suggested that there could be more market pain ahead. Traders may have made the mistake of assuming that inflation would soon no longer be a major economic problem. Wall Street’s big fear is that higher rates will eventually lead to an economic slowdown or even a recession. The US government will release figures for the producer price index, which measures prices at the wholesale level…as opposed to today’s consumer price index report.
- Every weekday afternoon, get a snapshot of global markets, along with key company, economic, and world news of the day.
- “Right now, some aspects of our current payment system are too slow or too expensive,” Yellen said on a Thursday call with reporters laying out some of the findings of the reports.
- The Fed is ready to tell us how much ‘pain’ the economy will suffer.
- During the crisis, the S&P 500 first closed below its 200-day on Dec. 27, 2007, and did not close back above the technical support level until June 1, 2009.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. Last week, this data reflected a 75%-25% split between a 75-basis-point and a 50-basis-point rate hike. Technology stocks led the way down, with the Nasdaq Composite plunging 5.2%. Tuesday’s session marks the seventh time this year the Nasdaq slid 4% or more, per data from Bespoke Investment Group. No declines of the same size were recorded last year, while 10 were experienced in 2020.
The U S Consumer Is Running On Fumes, Recent Data Suggest
The news has FedEx shares plunging 19% in premarket trading. The market was also rattled this week by the International Energy Agency’s outlook for almost zero growth in oil demand in the fourth quarter. FedEx issued a profit warning Thursday, withdrawing guidance for fiscal 2023 and said it expects business conditions to further weaken in the current quarter. Chicago and New York City are most at risk to a potential downturn in the housing market, according to real estate data curator ATTOM. Stocks tumbled after US consumer prices unexpectedly rose 0.1% in August. U.S. stocks sputtered Friday to close out the week in the red.
Morgan Stanley upgraded shares of Alcoa to an overweight rating, saying the company’s free cash flow yield and a constructive outlook for aluminum prices will support shares of the metals giant. The tech-heavy index fell by 1.7% on Friday morning and has now lost more than 6% for the week. As fears of a recession began to rise this summer, many portfolio managers and strategists have predicted that projected earnings growth for 2023 will prove to be too high. FedEx’s warning about its business could be just one of many earnings estimate downgrades from companies and Wall Street analysts in the coming months.
Energy And Mining Are Making The Stock Market Look Too Good
Hargreaves Lansdown is not responsible for an article’s content and its accuracy. A slip by the S&P 500 below key chart support at 3,900 opens the door to a test of June stock-market lows, a top Wall Street technician warns. Nvidia Corp. faces a very different environment versus two years ago when it last launched a new chip architecture, one where demand is falling and its stock price has been more than halved over the year.
Oil Heads To Another Losing Week
Packaging Corporation of America declined more than 5%. American depository receipts of DHL owner Deutsche Post fell almost 5%. ECONOMY Consumer sentiment rises less than expected in September The University of Michigan’s consumer sentiment index rose less than expected in September as Americans’ confidence in the economy remains near a historic low. The package delivery company said it expects business conditions to further weaken in the current quarter after global volume softness accelerated in the final weeks the quarter ending August 31. The news wasn’t much better for investors in the broader market. The S&P 500 was down more than 3% and just four stocks in the blue chip index were in positive territory. Agriculture company Corteva was the S&P 500 leader, gaining 2% following news of a stock buyback.
U S Stocks Extend Losses In Final Hour Of Trading, Dow Down Nearly 200 Points
The VIX, a volatility index that is one of the seven components of the Fear & Greed Index, shot up nearly 8%. The forecast is for a year-over-year increase of 8.8% for overall producer prices and 7.1% over the past 12 months for core PPI, which excludes food and energy costs. As stocks settle after the trading day, levels might still change https://dotbig.com/markets/stocks/KO/ slightly. I understand that 2022 has been a bad year for most investors. We’ve seen some decent rallies, but then a day like this past Tuesday comes along – the worst day in more than two years – and some of thos… In an atmosphere that features crazy market swings and rising interest rates, investors are looking to cash for safety.
Rates & Bonds
The Dow plummeted nearly 900 points in late morning trading…and all 30 Dow components were in the red. Nine Dow stocks, including tech giants Intel , Microsoft , Apple and Salesforce , were down more than 4% each. The tech sector was hit particularly DotBig hard Tuesday, as investors ratcheted up their bets for a historically large interest rate hike by the Federal Reserve next week. All eyes are on the Fed meeting, but the stock market has already sold off hard as it rate hike reality sets in.
"Between Census data and a possible 2nd Prime Day, we feel good about the retail business," analyst Lloyd Walmsely wrote in a note. The long-end of the curve is seeing the biggest moves today, with the 30-year Treasury yield rising more than 3 basis points to 3.517%. Home Depot, Honeywell and Microsoft followed, all falling around around 8% this week. Boeing and Dow, Inc. each dropped nearly 9% week over week, making coke stock them the biggest losses in the Dow Jones Industrial Average. The breach happened Thursday, causing the company to take several of its internal communications and engineering systems offline, according to the New York Times. Though Weissland is "pretty confident" in the automaker’s ability to fulfill the majority of its EV orders, he expects that supply chain issues will likely persist for the next few years.
News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The company said it is closing 90 office locations, shutting down five corporate office facilities and pausing hiring efforts, as part of those cost-cutting measures. Shares of FedEx tumbled 15.3% in after hours trading after the transport company withdrew https://www.finam.ru/profile/forex/usd-rub/secondary/ its full-year guidance, and said it will implement cost-cutting initiatives to contend with a worsening macro. Expect shares of Tesla to rally as much as 32% as the electric vehicle giant boosts production at struggling factories and benefits from the government’s latest climate bill, Deutsche Bank says. The front end of the yield curve continues to make new highs, with the 2-year Treasury yield topping 3.9% on Friday.