NYSE Dow Jones finished today at:

[bigdog]

Stock market today: Asian shares are mixed after Bank of Japan ups key rate for 1st time in 17 years

Shares are mixed in Asia after the Bank of Japan hiked its benchmark interest rate for the first time in 17 years, ending a longstanding negative rate policy.

apnews.com

Wall Street rises ahead of a big week for central banks​

By STAN CHOE

NEW YORK (AP) — U.S. stocks rose Monday ahead of a busy week for central banks around the world that could dictate where interest rates go.

The S&P 500 added 32.33 points, or 0.6%, to 5,149.42, coming off its first back-to-back weekly losses since October. At one point during the day, it was on track to surpass its all-time closing high set last week.

The Dow Jones Industrial Average rose 75.66, or 0.2%, to 38,790.43, and the Nasdaq composite gained 130.27, or 0.8%, to 16,103.45.

The highlight for Wall Street this week will likely be the Federal Reserve’s meeting on interest rates, which ends on Wednesday. The widespread expectation is for the central bank to hold its main interest rate steady at its highest level since 2001.

But Fed officials will also give updated forecasts for where they see interest rates heading this year and in the long run. They earlier had penciled in three cuts to rates this year, which would relieve pressure on the economy and financial system.

Recent reports on inflation have consistently been coming in worse than expected, though. That could force the Fed to trim how many rate cuts it foresees delivering this year.

Such a move would be a sore disappointment for Wall Street, where stock prices have already run up partly on expectations for lower rates. Treasury yields in the bond market have also eased since last autumn on such expectations, though they’ve pared those losses on worries about stubbornly high inflation.

It’s possible that the Fed could keep its main interest rate near its current level throughout this year, according to Joe Davis, Vanguard’s chief global economist. The investment giant recently raised its baseline outlook for the U.S. economy to see no recession in 2024, but it also raised its forecast slightly for underlying inflation trends.

Across the Pacific, the Bank of Japan will announce its latest decision on interest rates on Tuesday. It’s been keeping rates below zero in hopes of goosing the economy and inflation. Speculation is rising that wages for Japanese workers are rising enough for the Bank of Japan to finally move rates higher.

Across the Atlantic, the Bank of England will announce its latest decision on interest rates later in the week.

On Wall Street, Nvidia rose 0.7% after paring an earlier, bigger gain as it kicked off its annual conference for developers.

A frenzy around artificial-intelligence technology on Wall Street has sent the stocks of Nvidia and other players zooming so high that critics call it a bubble. Nvidia has grown into the U.S. stock market’s third-largest stock.

Other Big Tech stocks also pushed the S&P 500 upward to snap a three-day losing streak, its longest in more than two months. Alphabet rallied 4.6%, and Tesla jumped 6.3% to trim its loss for the year so far.

On the losing end of Wall Street was Hertz Global Holdings, which skidded 6.2% to bring its loss for the year so far to 31.6%. Its chair and CEO, Stephen Scherr, will resign at the end of March. The company named Wayne “Gil” West as its CEO. He’s a former executive at Cruise, the self-driving car company, and at Delta Air Lines.

Trading was mixed on Wall Street, and the smaller stocks in the Russell 2000 index slipped 0.7%.

Boeing sank another 1.5% to bring its loss for the year to 31%. It’s been struggling with concerns about its manufacturing quality, and its latest negative headline came on Friday. Workers found a panel missing on an older Boeing 737-800 after it arrived at its destination in southern Oregon from San Francisco.

In the bond market, the yield on the 10-year Treasury rose to 4.33% from 4.31% late Friday.

In stock markets abroad, Japan’s Nikkei 225 jumped 2.7%. Shares of both Nissan Motor and Honda Motor Co.’s shares climbed after the two automakers agreed on a partnership in electric vehicles.

Outside of a 1% jump for stocks in Shanghai, moves were much more modest elsewhere across Asia and Europe.

ASX 200 expected to edge higher​

The Australian share market is expected to edge higher on Tuesday following a positive start to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is poised to open the day 3 points higher.

U.S. stocks rose Monday ahead of a busy week for central banks around the world that could dictate where interest rates go.

The S&P 500 added 32.33 points, or 0.6%, to 5,149.42, coming off its first back-to-back weekly losses since October. At one point during the day, it was on track to surpass its all-time closing high set last week.

The Dow Jones Industrial Average rose 75.66, or 0.2%, to 38,790.43, and the Nasdaq composite gained 130.27, or 0.8%, to 16,103.45.

The highlight for Wall Street this week will likely be the Federal Reserve’s meeting on interest rates, which ends on Wednesday. The widespread expectation is for the central bank to hold its main interest rate steady at its highest level since 2001.

 

[bigdog]

Stock market today: Asian shares follow Wall St higher as markets await a rate decision by the Fed

Stocks gained ground as the wait begins to hear from the Federal Reserve on what it will do with interest rates.

apnews.com

Wall Street rises to a record as it waits for the Fed​

By STAN CHOE

The S&P 500 rose to a record Tuesday as Wall Street made some of its final moves before hearing what the Federal Reserve will do with interest rates.

The benchmark index rose 29.09 points, or 0.6%, to 5,178.51 and topped its all-time high set last week. The Dow Jones Industrial Average jumped 320.33, or 0.8%, to 39,110.76, and the Nasdaq composite gained 63.34, or 0.4%, to 16,166.79.

All three indexes erased losses from earlier in the day to climb.

International Paper rose 11% for the biggest gain in the S&P 500 after it named Andrew Silvernail, an executive at investment company KKR, as its new CEO.

Shares of Unilever that trade in the United States added 2.8% after it said it was spinning off Ben & Jerry’s and its ice cream business, while cutting 7,500 jobs.

Nvidia swung through the day and went from one of the heaviest weights on the market to one of its strongest propellants. Its massive size gives it outsized sway on indexes, and it went from a loss of nearly 4% to a gain of 1.1%.

It unveiled new products at its developers’ conference a day earlier, which analysts said should keep Nvidia ahead of competitors. Its stock had already more than tripled over the last 12 months because of the frenzy around artificial-intelligence technology.

On the losing end of Wall Street was Super Micro Computer, whose stock had earlier zoomed from less than $100 to more than $1,000 in a year. The seller of server and storage systems used in AI and other computing, sank 9% after it said it’s looking to sell 2 million shares of its stock.

Elsewhere on Wall Street, the focus was on the Federal Reserve.

The Fed began its latest meeting on interest rates and will announce its decision on Wednesday. The widespread expectation is for it to leave its main interest rate alone at a two-decade high. The hope is that it will indicate it still expects to cut rates three times later this year, as it hinted a few months ago.

Part of the run for U.S. stocks to records has been because of hopes for such cuts, which would relieve pressure on the economy and financial system. But recent reports on inflation have consistently been coming in worse than expected. That could force the Fed to say it will deliver fewer rate cuts this year, and traders have already given up earlier expectations that the year’s first cut would arrive Wednesday.

Strategists at Bank of America expect Fed officials to stick with forecasts showing the median member still expects three cuts in 2024. But it’s a close call, and “risks skew to fewer cuts signaled,” according to the strategists led by Mark Cabana.

Treasury yields eased in the bond market ahead of the announcement. The yield on the 10-year Treasury slipped to 4.29% from 4.33% late Monday.

High yields and interest rates can hurt prices for stocks broadly, while also sucking dollars and enthusiasm out of excited parts of the market.

Bitcoin’s price has been generally sliding since hitting a peak above $73,000 last week. It’s notorious for taking investors through severe swings in price. It fell further Tuesday and dropped below $63,900.

In stock markets abroad, Japan’s Nikkei 225 rose 0.7% after the Bank of Japan hiked its benchmark interest rate for the first time in 17 years. In a historic move, it moved the rate back to a range of zero to 0.1% and made other changes, ending a long experiment of rates below zero meant to boost the economy and inflation.

The era-defining move was widely expected, and it still keeps interest-rate policies easy, analysts said.

Stocks fell 1.2% in Hong Kong and 0.7% in Shanghai after Troubled property developer China Evergrande Group said Beijing’s market watchdog fined it 4.2 billion yuan ($333.4 million) for allegedly falsifying its revenue, among other violations.

Stocks were mixed elsewhere in Asia and Europe.

ASX 200 expected to rise again​

The Australian share market looks set to rise again on Wednesday following a strong session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 13 points higher.

The S&P 500 rose to a record Tuesday as Wall Street made some of its final moves before hearing what the Federal Reserve will do with interest rates.

The benchmark index rose 29.09 points, or 0.6%, to 5,178.51 and topped its all-time high set last week. The Dow Jones Industrial Average jumped 320.33, or 0.8%, to 39,110.76, and the Nasdaq composite gained 63.34, or 0.4%, to 16,166.79.

All three indexes erased losses from earlier in the day to climb.


Market Watch

 

[bigdog]

Stock market today: Asian shares rise after Wall Street rallies to records

Asian benchmarks are mostly higher after U.S. stocks rallied to records following the Federal Reserve's indication that it expects to deliver interest rate cuts later this year.

apnews.com

Wall Street rallies to records as Federal Reserve still sees rate cuts for 2024​

By DAMIAN J. TROISE and STAN CHOE


NEW YORK (AP) — U.S. stocks rallied to records Wednesday after the Federal Reserve indicated it’s likely to deliver the cuts to interest rates this year that Wall Street craves, despite some discouragingly high inflation reports.

The S&P 500 jumped 46.11 points, or 0.9%, to 5,224.62 and set an all-time high for a second straight day. It’s already run up 9.5% so far in this young year, which is a bit better than the average for a full year over the last two decades.

The Dow Jones Industrial Average jumped 401.37, or 1%, to 39,512.13, and the Nasdaq composite roared 202.62 points higher, or 1.3%, to 16,369.41. Both also hit records.

Some of Wall Street’s nervousness coming into the day washed away after the Fed released a survey of its policy makers, which showed the median still expects the central bank to deliver three cuts to interest rates in 2024. That’s the same number as they had penciled in three months earlier, and expectations for the relief that such cuts would provide are a big reason U.S. stock prices have set records.

The fear on Wall Street was that the Fed may trim the number of forecasted cuts because of a string of recent reports that showed inflation remaining hotter than expected. The Fed has been keeping its main interest rate at its highest level since 2001 to grind down inflation. High rates slow the overall economy by making borrowing more expensive and by hurting prices for investments.

Fed Chair Jerome Powell said he noticed the last two months’ worse-than-expected reports, but they “haven’t really changed the overall story, which is that of inflation moving down gradually on a sometimes bumpy road towards 2%. That story hasn’t changed.”

Powell said again that the Fed’s next move is likely to be a cut sometime this year, but that it needs more confirmation inflation is moving toward its target of 2%.

The Fed has dangerously little room for error. Cutting rates too early risks allowing inflation to reaccelerate, but cutting too late could lead to widespread job losses and recession.

“I don’t think we really know whether this is a bump on the road or something more; we’ll have to find out,” Powell said about January and February’s inflation data. “In the meantime, the economy is strong, the labor market is strong, inflation has come way down, and that gives us the ability to approach this question carefully.”

Fed officials upgraded their forecasts for the U.S. economy’s growth this year, while also indicating they may end up keeping its main interest rate higher in 2025 and 2026 than earlier thought.

“They probably figure they don’t need to cause a recession to tame inflation, and that’s a good thing,” said Brian Jacobsen, chief economist at Annex Wealth Management.

In the bond market, Treasury yields had a mixed reaction.

The two-year Treasury yield, which closely tracks expectations for Fed action, initially jumped before quickly giving up the gain. It eventually fell back to 4.61%, down from 4.69% late Tuesday, as traders built bets for the Federal Reserve to begin cutting rates in June.

Traders had already given up on earlier hopes for the Fed to begin cutting in March. The worry is that if the Fed waits too long into the summer before lowering rates, it may not end up doing so all year. That’s because of the risk of appearing political if it were to make big changes to policies just ahead of U.S. elections set for November.

The yield on the 10-year Treasury, which also takes into account longer-term economic growth and inflation, initially tumbled after the Fed’s announcement but then swiveled. It was later sitting at 4.28%, down from 4.30% late Tuesday.

On Wall Street, Mexican food chain Chipotle rose 3.5% after announcing its first stock split in history, a move that would lower the price of each share and make it accessible for more investors.

In stock markets abroad, indexes Europe and Asia were mixed. Japan’s market was closed for a holiday a day after the Bank of Japan hiked its benchmark interest rate for the first time in 17 years, raising the rate to a range of zero to 0.1% from minus 0.1%.

The FTSE 100 in London was virtually flat after British inflation in February came in below expectations at 3.4%, marking its lowest level since September 2021. That supports hope for rate cuts in coming months.

ASX 200 expected to jump​

The Australian share market looks set for a very positive session on Thursday following a great night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 47 points or 0.6% higher this morning.

U.S. stocks rallied to records Wednesday after the Federal Reserve indicated it’s likely to deliver the cuts to interest rates this year that Wall Street craves, despite some discouragingly high inflation reports.

The S&P 500 jumped 46.11 points, or 0.9%, to 5,224.62 and set an all-time high for a second straight day. It’s already run up 9.5% so far in this young year, which is a bit better than the average for a full year over the last two decades.

The Dow Jones Industrial Average jumped 401.37, or 1%, to 39,512.13, and the Nasdaq composite roared 202.62 points higher, or 1.3%, to 16,369.41. Both also hit records.

 

[bigdog]

Stock market today: Asian shares slip after another Wall Street record day

Stocks are extending their push to record highs in morning trading on Wall Street, led by big gains in chipmakers. The S&P 500 was up 0.5% Thursday.

apnews.com

Wall Street extends records as Reddit soars in market debut, Apple falls on suit​

By DAMIAN J. TROISE and STAN CHOE

NEW YORK (AP) — U.S. stocks extended their push to record heights on Wall Street Thursday, led by big gains for chipmakers.

The S&P 500 rose 16.91 points, or 0.3%, to 5,241.53 and set an all-time high for a third straight day. Three out of every four stocks in the index gained ground.

The Dow Jones Industrial Average gained 269.24, or 0.7%, to 39,781.37, and the Nasdaq composite rose 32.43, of 0.2%, to 16,401.84. Both indexes added to records set a day earlier.

Micron surged 14.1% and led chipmakers higher after reporting much stronger results for its latest quarter than expected. It also gave a forecast for profit in the current quarter that topped analysts’ estimates, as it benefits from a rush into artificial intelligence.

Chipmaker Broadcom climbed 5.6% and was an even stronger force pushing the S&P 500 upward because of its larger size. It held an investor presentation a day earlier on its opportunities in AI. A general frenzy around AI technology on Wall Street has sent some stocks to dizzying heights.

Reddit climbed 48.4% in its debut as a publicly traded stock. The eclectic bazaar of online communities offered its stock at an initial price of $34 a share.

They helped to more than offset a 4.1% slump for Apple after the Justice Department announced a sweeping antitrust lawsuit against the iPhone maker. It accused the tech giant of engineering an illegal monopoly in smartphones that boxes out competitors and stifles innovation.

Accenture was another weight on the market after dropping 9.3%. The consulting and professional services company reported stronger profit for the latest quarter than analysts expected. But its forecast for profit over this full fiscal year fell short of estimates.

Olive Garden owner Darden Restaurants fell 6.5% after its revenue forecast for the full fiscal year came up shy of analysts’.

Treasury yields were mostly steady a day after the Federal Reserve said it still expects to make three rate cuts this year. That helped calm some worries on Wall Street that it would pull some cuts off the table following some hotter-than-expected inflation reports.

Lower interest rates would relax pressure on the economy and the financial system. Wall Street expects the Fed to start cutting rates at its meeting in June.

Some reports Thursday morning suggested the U.S. economy is doing better than expected, even in the fact of high rates. Fewer U.S. workers filed for unemployment benefits last week, another signal of a remarkably resilient job market.

A measure of manufacturing activity in the mid-Atlantic region unexpectedly grew, while a preliminary look at manufacturing nationwide was also better than expected.

Wall Street will get its next big inflation update next week when the U.S. reports personal consumption and expenditures data for February. It is the Fed’s preferred measure of inflation. Overall, inflation has eased by several measures since spiking in the middle of 2022, though progress stalled in the first two months of this year.

Markets in Europe and Asia mostly gained ground.

The Chinese government announced fresh measures to support its economy.

The Swiss National Bank said it is trimming its key interest rate, a surprise move that makes Switzerland the first major financial center to announce a cut in recent months. The Bank of England kept its main interest rate unchanged at a 16-year high and avoided signaling when it might start to cut even though inflation has dropped sharply.

ASX 200 poised to fall​

The Australian share market looks set to end the week in the red despite a very good night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 14 points or 0.2% lower this morning.

U.S. stocks extended their push to record heights on Wall Street Thursday, led by big gains for chipmakers.

The S&P 500 rose 16.91 points, or 0.3%, to 5,241.53 and set an all-time high for a third straight day. Three out of every four stocks in the index gained ground.

The Dow Jones Industrial Average gained 269.24, or 0.7%, to 39,781.37, and the Nasdaq composite rose 32.43, of 0.2%, to 16,401.84. Both indexes added to records set a day earlier.

 

[bigdog]

Stock market today: Wall Street closes its best week of the year with a quiet finish

Wall Street closed its best of the year so far with a quiet finish. The S&P 500 slipped 0.1% Friday after setting all-time highs in each of the last three days.

apnews.com

Wall Street closes its best week of the year with a quiet finish​

By DAMIAN J. TROISE

NEW YORK (AP) — U.S. stocks closed their best of the year so far with a quiet finish on Friday, remaining near their records.

The S&P 500 slipped 7.35 points, or 0.1%, from its all-time high to close at 5,234.18. The Dow Jones Industrial Average fell 305.47, or 0.8%, to 39,475.90, and the Nasdaq composite rose 26.98, or 0.2%, to 16,428.82 to add to its record.

Nike dragged on the market after falling 6.9%. It reported stronger results for the latest quarter than analysts expected, but it’s in the midst of several fundamental changes to inject more newness into its shoes and other products to make them more popular.

Shares of Lululemon Athletica also dropped despite a better-than-expected profit report. The athletic apparel company gave forecasts for revenue and profit over the upcoming fiscal year that fell short of analysts’ expectations, and it sank 15.8%.

Reddit fell 8.8% to give back some of the big gain from its dynamic debut on the U.S. stock market. The eclectic bazaar of online communities offered its stock at an initial price of $34 a share and gained 48.4% in its first day of trading on Thursday.

Helping to support the market was FedEx, which climbed 7.4% after reporting stronger profit than expected despite what it called “a difficult demand environment.”

Some of the market’s wildest action was centered on Digital World Acquisition Corp. The company’s shareholders on Friday approved a merger with the company behind former President Donald Trump’s Truth Social platform. Its stock went from a 12% gain early in the day to a drop of 13.7%

The stock had been on a spectacular run this year as Trump has marched toward the Republican nomination for president. But it began falling shortly after Digital World shareholders approved the merger, which would see Trump Media & Technology Group shares trade under the symbol DJT and replace Digital World’s DWAC.

Critics have said Digital World’s stock is much, much higher than the businesses’ fundamentals suggest, and Truth Social has been losing money.

In the bond market, Treasury yields sank to pull back further for the week. The yield on the 10-year Treasury fell to 4.20% from 4.27% late Thursday.

Earlier this week, the Federal Reserve indicated that it still may deliver three cuts to interest rates this year, as long as inflation keeps cooling. That calmed worries on Wall Street that several hotter-than-expected inflation reports this year could force it to take rate cuts off the table.

The Federal Reserve’s main interest rate is at its highest level since 2001, and Wall Street is hoping for cuts to begin in June. Such reductions would relieve pressure on the economy and financial system.

Continued expectations for a coming Fed pivot on rates are likely to support stocks, along with surging investment in artificial intelligence and several other drivers for the market, according to David Lefkowitz, head of U.S. equities at UBS Global Wealth Management.

But he sees the S&P 500 ending the year close to where it is now, after it’s already leaped nearly 10% so far in 2024.

In stock markets abroad, indexes tumbled 2.2% in Hong Kong and 0.9% in Shanghai but moved more modestly elsewhere in mixed trading across the rest of Asia and Europe.

 

[bigdog]

ASX 200 expected to rise​

The Australian share market looks set to edge higher on Monday despite a relatively poor finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 7 points higher.

On Friday, U.S. stocks closed their best of the year so far with a quiet finish on Friday, remaining near their records.

The S&P 500 slipped 7.35 points, or 0.1%, from its all-time high to close at 5,234.18. The Dow Jones Industrial Average fell 305.47, or 0.8%, to 39,475.90, and the Nasdaq composite rose 26.98, or 0.2%, to 16,428.82 to add to its record.

 

[bigdog]

Stock market today: Asian shares trading mixed after Wall Street’s momentum cools

Asian shares were mixed in muted trading, as buying in some markets was soon erased by profit-taking.

apnews.com

Wall Street’s momentum cools after its latest record-setting week​

By STAN CHOE

NEW YORK (AP) — Wall Street edged back further from its record heights on Monday to start a shortened trading week.

The S&P 500 slipped 15.99 points, or 0.3%, to 5,218.19 in a quiet day of trading. The Dow Jones Industrial Average fell 162.26, or 0.4%, to 39,313.64, and the Nasdaq composite dropped 44.35, or 0.3%, to 16,384.47.

The market tapped the brakes following its big run last week, which was its best of the year and sent all three indexes to records on Thursday. Stocks climbed as the Federal Reserve indicated it’s still likely to deliver several cuts to interest rates this year, as long as inflation keeps cooling.

That has the S&P 500 on track for another winning month in what’s been a nearly unstoppable run since late October. The strength has been durable as the economy has remained resilient, “but the longer the market goes up without a notable pullback, the closer we come to such a move taking place,” according to Chris Larkin, managing director, trading and investing at E-Trade from Morgan Stanley.

For the market to continue rallying, more companies will need to deliver strong earnings growth to justify high prices, say strategists at Morgan Stanley.

United Airlines weighted on the market and lost 3.4%. Federal regulators are increasing their oversight of the company following several recent issues, including a piece of the outer fuselage falling off one jet and a plane losing a tire during takeoff.

Boeing trimmed some of its sharp losses for the year and rose 1.4%. Beset by worries about its safety and quality of manufacturing, the plane maker announced a shakeup to its management. Among the moves is the departure of its CEO, set for the end of the year.

Wall Street is also preparing for the return of a stock trading under the ticker symbol “DJT,” the initials of former President Donald Trump. The company behind his Truth Social platform completed its merger with Digital World Acquisition Corp. after Digital World’s shareholders approved the deal on Friday.

The company’s stock jumped 35.2% in what’s expected to be its last day trading under the ticker symbol of “DWAC.” On Tuesday, it will begin trading under “DJT,” which was used by Trump Hotels & Casino Resorts before it filed for Chapter 11 bankruptcy protection in 2004.

This week’s highlight for financial markets may be Friday’s report on U.S. consumer spending. It will also include the latest update on the measure of inflation that the Federal Reserve prefers to use. But the U.S. stock and bond markets will be closed that day in observance of Good Friday. The U.S. bond market will also close early on Thursday, which could bunch up trades in anticipation of the report.

Despite a string of recent reports that showed inflation remaining hotter than expected, the Federal Reserve seems to expect inflation to continue its longer-term cooling trend.

Traders largely expect the Federal Reserve to begin cutting rates in June. That would offer relief for the economy because the Fed’s main rate has been sitting at its highest level since 2001 for nearly eight months. High rates work to grind down inflation by slowing the entire economy and hurting prices for investments.

In the bond market, Treasury yields climbed. The 10-year yield rose to 4.24% from 4.20% late Friday.

In stock markets abroad, indexes mostly moved modestly in mixed trading across Europe and Asia.

ASX 200 expected to fall​

The Australian share market is expected to fall on Tuesday following a relatively poor start to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is poised to open the day 29 points or 0.35% lower at 7,836 points

Wall Street edged back further from its record heights on Monday to start a shortened trading week.

The S&P 500 slipped 15.99 points, or 0.3%, to 5,218.19 in a quiet day of trading. The Dow Jones Industrial Average fell 162.26, or 0.4%, to 39,313.64, and the Nasdaq composite dropped 44.35, or 0.3%, to 16,384.47.

 

[bigdog]

Stock market today: Asian shares are mixed after Wall Street retreats from all-time highs

Asian shares are mixed after Wall Street slipped a bit further from its record highs. Oil prices fell while U.S. futures edged higher.

apnews.com

Wall Street edges back further from its all-time highs​

By STAN CHOE

NEW YORK (AP) — Wall Street slipped a bit further from its record heights on Tuesday.

The S&P 500 fell 14.61 points, or 0.3%, to 5,203.58 for its third straight modest drop since setting an all-time high.

The Dow Jones Industrial Average dipped 31.31, or 0.1%, to 39,282.33, and the Nasdaq composite fell 68.77, or 0.4%, to 16,315.70.

Stock indexes were modestly higher for much of the day thanks to several Big Tech stocks. Tesla rose 2.9%, and Alphabet ticked up by 0.4%. But a late-day slide by Nvidia ended up helping to pull the market lower. It fell 2.5%.

Several smaller companies made some of the splashiest moves. Krispy Kreme soared 39.4%, after it announced a deal where McDonald’s restaurants will sell its doughnuts across the country. It will begin later this year and hopes to be nationwide by the end of 2026.

Another food company, McCormick, climbed 10.5% after reporting stronger profit for the latest quarter than analysts expected. The seller of spices, hot sauces and seasonings also said its business looks strong, with sales growth for the year looking to come in at the high end of its projections.

Trump Media & Technology Group was another big mover, jumping 16.1%. It was the first day of trading for the company under its new ticker, “DJT,” which are the initials of former President Donald Trump. The company took the place of a shell company that had been trading on the Nasdaq after the two merged.

The stock’s price has shot well beyond what several experts say is reasonable, driven by excitement about Trump’s latest run for the White House. Truth Social, the platform that’s the company’s main asset, is losing money and expects to continue to do so while competing against rivals that likely have many more users.

The overall U.S. stock market is also facing criticism that it’s become too expensive, though not as much as Trump Media & Technology Group has received.

The S&P 500 has already roared 9% higher this year and is on track to close out its fifth straight winning month. Excitement is high because the U.S. economy has remained remarkably resilient despite high interest rates meant to get inflation under control. Plus, the Federal Reserve looks set to start lowering interest rates this year because inflation has cooled from its peak.

Strong buying of stock by companies themselves has also helped to support prices. Stock buybacks among corporate clients at Bank of America reached their fifth-highest level in its weekly data history, going back to 2010, according to strategist Jill Carey Hall.

But critics say a broader range of companies will need to deliver strong profit growth to justify their big moves in price. Progress on bringing inflation down has also become bumpier recently, with reports this year coming in hotter than expected.

Still, the broad expectation among traders is for the Federal Reserve to begin cutting its main interest rate in June. Some even see a slight possibility of it starting at its meeting next week.

In the bond market, Treasury yields slipped following mixed reports on the economy.

One from the U.S. government showed that orders for machinery, computers and other long-lasting manufactured goods rose in February following two months of drops.

But a later report from the Conference Board said confidence among U.S. consumers unexpectedly ticked down, when economists were forecasting a rise. Solid spending by U.S. consumers has been one of the linchpins keeping the economy out of a long-predicted recession.

The yield on the 10-year Treasury dipped to 4.22% from 4.24% late Monday. The two-year yield, which more closely tracks expectations for the Fed, fell to 4.58% from 4.63%

In stock markets abroad, indexes were mostly modestly higher across much of Europe and Asia.

ASX 200 expected to edge lower​

The Australian share market looks set to drop slightly on Wednesday following a subdued session in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 19 points lower.

Wall Street slipped a bit further from its record heights on Tuesday.

The S&P 500 fell 14.61 points, or 0.3%, to 5,203.58 for its third straight modest drop since setting an all-time high.

The Dow Jones Industrial Average dipped 31.31, or 0.1%, to 39,282.33, and the Nasdaq composite fell 68.77, or 0.4%, to 16,315.70.

 

[bigdog]

Stock market today: Asian shares meander after S&P 500 sets another record

Asian shares have opened mixed after U.S. stocks broke out of a three-day lull to close at a record. Chinese markets rose and Tokyo's benchmark fell.

apnews.com

S&P 500 sets a record after Wall Streets breaks out of its lull​

By STAN CHOE
Updated 8:17 AM GMT+11, March 28, 2024

NEW YORK (AP) — U.S. stocks rose to a record Wednesday after breaking out of their three-day lull.

The S&P 500 climbed 44.91 points, or 0.9%, to 5,248.49. It was the first gain for the index since setting its last all-time high on Thursday.

The Dow Jones Industrial Average jumped 477.75, or 1.2%, to 39,760.08, and the Nasdaq composite gained 83.82, or 0.5%, to 16,399.52. Both finished a bit shy of their own records.

Merck climbed 5% after federal regulators approved its treatment for adults with pulmonary arterial hypertension, a rare disease where blood vessels in the lungs thicken and narrow.

Cintas, a provider of work uniforms and office supplies, was another force pushing the S&P 500 upward. It jumped 8.2% after reporting stronger profit for the latest quarter than analysts expected.

Shares of Trump Media & Technology Group, meanwhile, continued their wild ride and rose another 14.2%. The company behind the money-losing Truth Social platform has zoomed well beyond what critics say is rational, as fans of former president Donald Trump keep pushing it higher.

Robinhood Markets climbed 3.7% after unveiling its first credit card, which is reserved for its subscription-paying Gold members, along with other new products.

On the losing end of Wall Street was Nvidia, which slumped to a second straight loss after screaming 91% higher for the year so far. It sank 2.5%, as some investors may have locked in profits before closing their books on the year’s first quarter. Nvidia has been one of the biggest winners of Wall Street’s frenzy around artificial intelligence.

GameStop tumbled 15% after delivering a profit for the latest quarter and a drop in revenue from the prior year. It’s the original meme stock, predating Trump Media by years, where its price has often moved more on the sentiment of smaller-pocketed investors than on traditional fundamentals like its profit and revenue.

In the bond market, Treasury yields slipped on a day with few economic reports to shake things up.

The yield on the 10-year Treasury fell to 4.19% from 4.23% late Tuesday.

This week’s highlight for the bond market may be arriving Friday, when the U.S. government releases the latest monthly update on spending by U.S. consumers. It will include the measure of inflation that the Federal Reserve prefers to use as it sets interest rates.

Both the U.S. bond and stock markets will be closed that day for Good Friday. That could cause some anticipatory trades to bunch up on Thursday. It will be the last trading day of the year’s first quarter, which could further roil things.

The S&P 500 is on track for a fifth straight winning month and has been roaring higher since late October. The U.S. economy has remained remarkably resilient despite high interest rates meant to get inflation under control. Plus, the Federal Reserve looks set to start lowering interest rates this year because inflation has cooled from its peak.

But critics say a broader range of companies will need to deliver strong profit growth to justify the big moves in prices. Progress on bringing inflation down has also become bumpier recently, with reports this year coming in hotter than expected.

Still, the broad expectation among traders is for the Federal Reserve to begin cutting its main interest rate in June.

Stocks generally tend to do the best when more than half the world’s central banks are easing interest rates, according to Ned Davis Research. The world is not there yet, but several central banks have already begun cutting recently, like Switzerland’s, and it could happen later this year.

In stock markets abroad, indexes were mixed across Europe and Asia.

Chinese stocks were some of the worst performers. Stocks tumbled 1.4% in Hong Kong and 1.3% in Shanghai.

ASX 200 expected to storm higher​

The Australian share market looks set for a very positive session on Thursday following a great night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 60 points or 0.8% higher this morning.

U.S. stocks rose to a record Wednesday after breaking out of their three-day lull.

The S&P 500 climbed 44.91 points, or 0.9%, to 5,248.49. It was the first gain for the index since setting its last all-time high on Thursday.

The Dow Jones Industrial Average jumped 477.75, or 1.2%, to 39,760.08, and the Nasdaq composite gained 83.82, or 0.5%, to 16,399.52. Both finished a bit shy of their own records.


Market Watch

 

[bigdog]

NYSE Markets will be closed for Good Friday: Friday, March 29 and trading Monday April 1st

Stock market today: Wall Street rises to more records to close out its latest winning month

Wall Street coasted to its latest winning month and quarter by rising to more records. The S&P 500 rose 0.1% Thursday, adding to its all-time high set the day before.

apnews.com

Wall Street rises to more records to close out its latest winning month​

By STAN CHOE

NEW YORK (AP) — Wall Street set more records Thursday as U.S. stocks coasted to the close of their latest winning month and quarter.

The S&P 500 added 5.86 points, or 0.1%, to its all-time high set a day before and closed at 5,254.35. That sent its gain for the year’s first three months to a fat 10.2%. The only quarter that’s been better in the last two years was the one that came just before.

The Dow Jones Industrial Average ticked up by 47.29 points, or 0.1%, to 39,807.37 and likewise set a record. The Nasdaq composite dipped 20.06, or 0.1%, to 16,379.46. It’s just shy of its own all-time high.

The stock market has been on a nearly unstoppable run since late October, and the S&P 500 just capped its fifth straight winning month. It’s leaped as the U.S. economy has remained remarkably solid despite high interest rates meant to get inflation under control. And with inflation hopefully still cooling from its peak, the Federal Reserve has indicated it will likely cut interest rates several times later this year.

Thursday was the last day of trading for both the U.S. stock and bond markets this month and quarter. Financial markets will be closed on Friday for Good Friday.

Most stocks scrambled higher during the quarter, led by a pocket of companies riding Wall Street’s continued frenzy around artificial-intelligence technology. Nvidia, whose chips are powering much of the AI rush, surged 82.5%.

The only stock in the S&P 500 to do better was Super Micro Computer, which just joined the index recently because it’s also been caught up in AI mania. The company, which sells server and storage systems used in AI and other computing, saw its stock soar a staggering 255.3%.

They more than made up for stumbles during the quarter by companies like Tesla and Boeing. Tesla fell 29.3% to continue its volatile run, having more than doubled last year. Boeing, meanwhile, sank 26% as worries mounted about its safety and manufacturing quality.

In the bond market, Treasury yields inched higher Thursday following some mixed reports on the economy.

One said the U.S. economy’s growth in the final three months of last year was stronger than earlier estimated. Another said fewer U.S. workers applied for unemployment benefits last week, the latest indication of a solid job market.

Other reports showed that sentiment among U.S. consumers is stronger than economists expected, but manufacturing in the Chicago region is contracting by more than forecast.

The yield on the 10-year Treasury rose to 4.20% from 4.19% late Wednesday. The yield on the two-year Treasury, which more closely tracks expectations for the Fed, rose to 4.62% from 4.57%.

The hope on Wall Street is still that the Federal Reserve will begin cutting its main interest rate in June. Lower interest rates ease the pressure on the economy, while boosting prices for investments. But progress on bringing inflation down has become bumpier recently, with reports this year coming in hotter than expected.

A top official at the Federal Reserve, Gov. Christopher Waller, said in a speech late Wednesday that “there is no rush to cut the policy rate” given such data.

“Indeed, it tells me that it is prudent to hold this rate at its current restrictive stance perhaps for longer than previously thought to help keep inflation on a sustainable trajectory toward 2%,” Waller said.

Besides interest rates staying higher for longer, critics say other threats could also derail the stock market’s dash higher. Chief among them is that stock prices have climbed faster than corporate profits, leaving them looking expensive by some measures. Companies will need to deliver solid growth in profits to justify the moves.

On Wall Street, RH jumped 17.3% even though the retailer of home furnishings reported weaker profit and revenue for the latest quarter than analysts expected. It also indicated demand is trending upward, and it gave a revenue forecast for the upcoming year that was slightly above analysts’ expectations.

Analysts said investors are ready to pounce on signs of a recovery in the housing market, with interest and mortgage rates expected to come down later this year.

Chemours fell 9.1% despite reporting better results for the latest quarter than analysts expected. It gave a forecast for earnings before taxes and other items in the current quarter that was below analysts’ expectations. The company also said its board has completed its internal reviews of accounting issues and found some weaknesses in its internal control over financial reporting.

Also on the losing end was Trump Media & Technology Group. The company behind former President Donald Trump’s Truth Social fell 6.4% after soaring more than 14% in each of the past two days. Its stock has shot well beyond what critics say is reasonable for the money-losing company, driven by fans of Trump and investors hoping to cash in on the mania.

In stock markets abroad, Tokyo’s Nikkei 225 slumped 1.5% amid speculation about whether Japanese officials will make moves to support the value of the Japanese yen.

Movements were more modest across much of the rest of Asia and Europe.

 

[bigdog]

Stock market today: Wall Street slips as bond yields jump on surprisingly strong manufacturing data

Most U.S. stocks slipped after a surprisingly strong report on U.S. manufacturing raised worries about how much interest rates could ease this year.

apnews.com

Wall Street slips as bond yields jump on surprisingly strong manufacturing data​

By STAN CHOE

NEW YORK (AP) — Most U.S. stocks slipped Monday after a surprisingly strong report on U.S. manufacturing cast doubts on how much interest rates can ease this year.

The S&P 500 dipped 10.58 points, or 0.2%, from its all-time high to finish at 5,243.77. The Dow Jones Industrial Average dropped 240.52 points, or 0.6%, from its record to 39,566.85. The Nasdaq composite was an outlier and added 17.37, or 0.1%, to 16,396.83.

FedEx fell 3.3% after it said it did not extend its contract with the U.S. Postal Service to deliver air cargo domestically, which will end Sept. 29. Donald Trump’s social media company, Trump Media & Technology Group, lost more than a fifth of its value in another frenetic day of trading. The company, whose main business is the Truth Social platform, said that it lost $58.2 million last year on just $4.1 million in revenue. Its stock tumbled 21.5%.

Universal Health Services sank 4% for one of the S&P 500’s larger losses. It said a jury in Illinois awarded $535 million in damages to a patient who alleged negligence in a sexual-assault case involving another patient. The company said it has insurance to cover some of the amount, but the case’s final resolution may end up having a material effect on its financials.

Helping to keep the losses in check was Newmont. The miner’s stock rose 1.6% as the price of gold continues to set records.

In the bond market, Treasury yields spurted higher after a report said U.S. manufacturing unexpectedly returned to growth last month. It snapped a 16-month run of contraction, according to the Institute for Supply Management.

It’s the latest evidence showing the U.S. economy remains strong despite high interest rates. That’s a positive for the stock market because it can drive growth in profits for companies. But it can also keep upward pressure on inflation. That in turn could mean a more hesitant Federal Reserve when it comes to the cuts to interest rates that investors crave.

Following the manufacturing data, traders on Wall Street briefly trimmed bets on the first cut to rates coming as soon as June. That’s still a “reasonable baseline” expectation, according to Deutsche Bank economists, but they say tough talk from Fed officials recently could hint at interest rates staying higher for longer than earlier thought.

The Fed has hiked its main rate to the highest level since 2001 in order to slow the economy and hurt investment prices enough to get inflation under control. Expectations for coming cuts have been a major reason the S&P 500 soared more than 20% from October through March.

This week will offer several economic reports that could sway the Fed’s thinking, including updates on job openings across the country and the strength of U.S. services businesses. The headliner arrives on Friday, when economists expect a report to show that hiring cooled a bit last month.

A slowdown would be welcome on Wall Street, where the hope is that the economy remains solid but not so strong that it pushes inflation higher. Inflation is milder than it was at its peak nearly two years ago. But progress has become bumpier recently, with reports this year coming in hotter than expected.

Fed Chair Jerome Powell said again on Friday that the central bank is waiting to get “more good inflation readings” before cutting interest rates this year. It’s been sticking with an outlook for three cuts to rates in 2024.

On Friday, a report said inflation is behaving as expected, at least by the measure that the Federal Reserve prefers to use. Both the U.S. bond and stock markets were closed that day.

Wall Street traders now largely see three cuts as the likeliest possibility this year, after earlier forecasting more, but some bets shaded toward the possibility of fewer cuts following the morning’s better-than-expected data on manufacturing.

In the bond market, the yield on the 10-year Treasury jumped to 4.31% from 4.21% late Thursday. The two-year yield, which more closely tracks expectations for the Fed, climbed to 4.71% from 4.63%.

In stock markets abroad, Tokyo’s Nikkei 225 fell 1.4% after a Bank of Japan quarterly survey on business conditions showed sentiment among large manufacturers declined for the first time in a year.

In China, stocks gained 1.2% in Shanghai after surveys suggested the country’s manufacturing industry is strengthening.

In Europe, stock markets were closed for a holiday.

ASX 200 to open flat​

The Australian share market looks set to for a subdued day following a mixed couple of sessions on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day flat.
Most U.S. stocks slipped Monday after a surprisingly strong report on U.S. manufacturing cast doubts on how much interest rates can ease this year.

The S&P 500 dipped 10.58 points, or 0.2%, from its all-time high to finish at 5,243.77. The Dow Jones Industrial Average dropped 240.52 points, or 0.6%, from its record to 39,566.85. The Nasdaq composite was an outlier and added 17.37, or 0.1%, to 16,396.83.

 

[bigdog]

Stock market today: Asian shares drop after Wall Street sinks on rate worries

Asian shares are mostly declining after Wall Street sank, hitting the brakes on what’s been a nearly unstoppable romp.

apnews.com

Wall Street sinks on rate worries as health care stocks and Tesla tumble​

By STAN CHOE

NEW YORK (AP) — U.S. stocks sank Tuesday as Wall Street hit the brakes on what’s been a nearly unstoppable romp.

The S&P 500 fell 37.96 points, or 0.7% to 5,205.81 for its worst day in four weeks. It was its second straight drop after setting an all-time high to close last week.

Other indexes did worse. The Dow Jones Industrial Average lost 396.61 points, or 1%, to 39,170.24 and likewise pulled further from its record. The Nasdaq composite fell 156.38, or 1%, to 16,240.45, and the small stocks in the Russell 2000 index tumbled 1.8%.

Health insurance companies led the market lower on worries about their upcoming profits after the U.S. government announced lower-than-expected rates for Medicare Advantage. Humana tumbled 13.4%. Tesla, meanwhile, dropped 4.9% after delivering fewer vehicles for the start of 2024 than analysts expected.

One of the big reasons the U.S. stock market has screamed higher since late October is the expectation that the Federal Reserve will cut interest rates several times this year. The central bank itself has hinted as much, and an easing of rates would relieve pressure on both the economy and financial system.

But Fed officials have also said they need further confirmation inflation is heading sustainably down to their 2% target before acting. A surprisingly strong report on U.S. manufacturing Monday, which showed a return to growth after 16 straight months of contraction, hurt those expectations.

It’s the latest evidence of a remarkably resilient U.S. economy. That keeps people employed and corporate profits humming, but it could also add upward pressure on inflation. Progress there has become bumpier recently, with inflation reports this year coming in hotter than expected.

Traders have already drastically reduced their expectations for how many times the Federal Reserve will cut interest rates this year, halving them from a forecast of six at the start of the year. That would be in line with the three cuts that Fed officials themselves have hinted at.

Because the U.S. economy has remained stronger than expected, investors say the chances are rising that the Fed may deliver just two rate cuts this year. Gargi Chadhuri, chief investment and portfolio strategist, Americas, at BlackRock, suggests investors keep their bets spread across a wide range of investments, rather than “trying to time the market – or the Fed.”

Loretta Mester, president of the Cleveland Fed, said Tuesday that the bigger risk is cutting interest rates too early, rather than too late. The former could allow the economy to overheat and inflation to reaccelerate, while the latter could cause unnecessary pain for workers.

Her comments came as economic reports showed U.S. employers were advertising roughly the same number of job openings in February as they were a month earlier and a stronger-than-expected gain in factory orders.

In the bond market, the yield on the 10-year Treasury rose to 4.35% from 4.33% late Monday.

The two-year yield, which moves more closely with expectations for Fed action, slipped to 4.69% from 4.71% late Monday.

High rates slow the economy by design, by making borrowing more expensive. They also hurt prices for investments by making it more attractive for investors to put money instead in safer alternatives. Bitcoin fell 5.4%.

Beyond worries about interest rates staying high, critics say the U.S. stock market has also simply grown too expensive after soaring more than 20% in six months. Companies will likely need to deliver strong growth in profits to justify such big moves.

On Wall Street, several health care stocks led the market lower as worries rose about their upcoming profits. Analysts at Citi Research said the final Medicare Advantage rate approved by the government was well below expectations given higher-trending medical costs and a big lobbying push for the industry.

UnitedHealth Group fell 6.4%, and CVS Health lost 7.2%.

PVH, the company behind Calvin Klein and Tommy Hilfiger, lost more than a fifth of its value despite reporting stronger profit for the latest quarter than analysts expected. Its forecast for profit this upcoming year fell short of analysts’ estimates, in part due to weakness in Europe, and its stock dropped 22.2%.

Among the few gainers on Wall Street were stocks of oil and gas producers. Exxon Mobil rose 2% and Marathon Petroleum rose 3.4%.

They followed the price of crude higher. A barrel of benchmark U.S. oil rose $1.44 to settle at $85.15 and is back to where it was in October. A barrel of Brent crude, the international standard, climbed $1.50 to $88.92.

In Europe, stocks fell 0.9% in Paris. Germany’s DAX lost 1.1%, and London’s FTSE 100 was 0.2% lower.

In Asia, indexes were mixed. Hong Kong’s Hang Seng jumped 2.4%, but moves were much more modest elsewhere.

ASX 200 expected to sink
It looks set to be a difficult session for the Australian share market on Wednesday following a poor night in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.35% lower.

U.S. stocks sank Tuesday as Wall Street hit the brakes on what’s been a nearly unstoppable romp.

The S&P 500 fell 37.96 points, or 0.7% to 5,205.81 for its worst day in four weeks. It was its second straight drop after setting an all-time high to close last week.

Other indexes did worse. The Dow Jones Industrial Average lost 396.61 points, or 1%, to 39,170.24 and likewise pulled further from its record. The Nasdaq composite fell 156.38, or 1%, to 16,240.45, and the small stocks in the Russell 2000 index tumbled 1.8%.

Market Watch

 

[bigdog]

Stock market today: Asian shares mostly rise cheered by Wall Street finish

Asian shares are mostly higher after a firm finish on Wall Street, as expectations remained solid for U.S. interest rate cuts this year.

apnews.com

Wall Street holds firmer in mixed trading after its worst day in weeks​

By STAN CHOE

NEW YORK (AP) — U.S. stocks held firmer Wednesday, a day after their worst drop in weeks.

The S&P 500 inched up by 5.68 points, or 0.1%, to 5,211.49 The Dow Jones Industrial Average slipped 43.10, or 0.1%, to 39,127.14, and the Nasdaq composite added 37.01, or 0.2%, to 16,277.46.

GE Aerospace helped lead the S&P 500 with a jump of 6.7%. It was the second day of trading for the company after splitting off its power and energy business to mark the end of the General Electric conglomerate. Cal-Maine Foods rose 3.6% after reporting stronger profit for the latest quarter than expected by selling a record number of eggs.

They helped offset an 8.2% drop for Intel, which disclosed financial details about key parts of its business for the first time, including its money-losing foundry business. The Walt Disney Co. fell 3.1% after shareholders voted against installing an activist investor to its board who had promised to shake up the company to lift its stock price. The pair’s drops were a large reason the Dow lagged other indexes.

Stocks have broadly slowed their roll since screaming 26% higher from November through March. Worries are rising that a remarkably resilient U.S. economy could prevent the Federal Reserve from delivering as many cuts to interest rates this year as earlier hoped. Critics have also been saying at least a pullback was overdue after stock prices had grown expensive by several measures.

The Fed has indicated it may still cut its main interest rate three times this year, which would relieve pressure on the economy. But Fed officials say they will do so only if more evidence arrives to show inflation is heading down toward their goal of 2%.

Chair Jerome Powell reiterated that message in a speech Wednesday, spelling out the risks of cutting rates either too early or too late. “Given the strength of the economy and progress on inflation so far, we have time to let the incoming data guide our decisions on policy,” he said.

What has Wall Street worried has been a litany of reports showing the economy remains stronger than expected. That’s encouraging because it means the economy continues to avoid a recession, and it should provide support for corporate profits. But it could also add upward pressure on inflation and discourage the Fed from cutting rates.

Markets took encouragement from a report on Wednesday morning showing growth in construction, retail and other U.S. services businesses cooled last month. The report from the Institute from Supply Management also said an index of prices paid was at its lowest level since March 2020, an encouraging trend for inflation.

That calmed Wall Street’s nerves following a report earlier in the morning that markets found more discouraging. It suggested stronger gains than expected in hiring within the private sector. That report from the ADP Research Institute said employers accelerated their hiring last month, when economists were forecasting a slowdown.

A more comprehensive report on the job market for March will arrive from the U.S. government on Friday, and it will likely be the week’s headline economic data.

Traders have already drastically reduced their expectations for how many times the Federal Reserve will cut interest rates this year, halving them from a forecast of six at the start of the year. That has them on the same page with Fed officials generally. Some investors, though, are preparing for two or even zero cuts this year because the Fed may not want to begin lowering rates too close to November’s election out of fear of appearing political.

But the Fed’s Powell said Wednesday the central bank has the independence that “both enables and requires us to make our monetary policy decisions without consideration of short-term political matters.”

In the bond market, Treasury yields fell. The 10-year yield slipped to 4.34% from 4.36% late Tuesday. The two-year yield, which more closely tracks with expectations for Fed action, fell to 4.67% from 4.70%.

In stock markets abroad, European indexes were modestly higher. A report showed inflation in Europe cooled by more than expected in March, but analysts say that might not be enough to move up the European Central Bank’s first cut to interest rates.

Asian markets fell more sharply earlier in the day, following up on Wall Street’s losses from Tuesday. Indexes fell 1.7% in Seoul, 1% in Tokyo and 1.2% in Hong Kong.

ASX 200 expected to rebound​

The Australian share market looks set for a better session on Thursday following an improved night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.3% higher this morning.

U.S. stocks held firmer Wednesday, a day after their worst drop in weeks.

The S&P 500 inched up by 5.68 points, or 0.1%, to 5,211.49 The Dow Jones Industrial Average slipped 43.10, or 0.1%, to 39,127.14, and the Nasdaq composite added 37.01, or 0.2%, to 16,277.46.

 

[bigdog]

Stock market today: Asian shares mostly decline after Wall Street drop on rate cut concerns

Asian shares are mostly declining after a Federal Reserve official said the central bank might not deliver any of the cuts to interest rates this year that Wall Street has been counting on.

apnews.com

Wall Street falls to worst day in weeks on rate concerns as jobs report looms​

By STAN CHOE
Updated 8:43 AM GMT+11, April 5, 2024

NEW YORK (AP) — U.S. stocks tumbled Thursday after a Federal Reserve official raised the possibility of delivering none of the cuts to interest rates this year that Wall Street has been banking on, if inflation worsens.

The S&P 500 dropped 1.2% for its worst day in seven weeks. Earlier in the day, a gain of nearly 1% had brought it to the cusp of its record set last week.

The Dow Jones Industrial Average swung 530 points lower, or 1.4%, after reversing a rise of nearly 300 points. The Nasdaq composite fell 1.4%.

Financial markets were already on edge as traders made their final moves ahead of a jobs report on Friday that could itself shake the market. A late-day spurt for oil prices amid continued tensions in the Middle East unsettled things, threatening to add more pressure on inflation following oil’s strong gains so far this year. Around the same time, Treasury yields dropped in the bond market, which can be a signal of investors looking for safer harbors, and a measure of fear among U.S. stock investors leaped.

Stocks slumped after Minneapolis Fed President Neel Kashkari said he’s questioning the need to cut rates if so many areas of the economy look to be solid despite high interest rates.

He had earlier penciled in two cuts to interest rates this year, “but if we continue to see inflation moving sideways, then that would make me question about whether we need to do those rate cuts at all.”

“There’s a lot of momentum in the economy right now.” Kashkari said in an interview with Pensions & Investments.

Kashkari’s hypothetical case, which he said depends on “a lot of ‘ifs,’” cuts at one of the main propellants that drove the U.S. stock market up more than 20% from November into March: the expectation for several cuts to interest rates. Lower rates boost prices for investments, while easing the pressure on the economy, and stock prices had already jumped in part on expectations for them.

Traders had already drastically scaled back their predictions for how many cuts to interest rates the Federal Reserve would deliver this year, down from six at the start of the year to three more recently. That had them in line with Fed officials generally.

But several recent updates on the economy have come in hotter than expected, beyond some disappointingly high inflation reports at the start of the year that could be seen as temporary blips. A report earlier this week showing a surprise return to growth for U.S. manufacturing raised concerns in particular.

Kaskhari is not a voting member on the Fed’s policy-making committee this year, but that doesn’t mean he doesn’t have a voice at the table.

“The market remains highly sensitive to any indication that the data dependent Fed may need to curtail a rate easing cycle this year per Neel Kashkari’s comments this afternoon,” according to Quincy Krosby, chief global strategist for LPL Financial.

In the bond market, the yield on the 10-year Treasury fell to 4.30% from 4.35% late Wednesday. The two-year yield, which moves more on expectations for the Fed, slumped to 4.64% from 4.67% late Wednesday.

Earlier in the morning, yields had been holding steadier after a report showed more U.S. workers applied for unemployment benefits last week, though the number remains low compared with historical standards.

Wall Street is looking for the job market to cool enough to remove upward pressure on inflation, but not so much that it throws too many people out of work and causes a recession.

That’s raised the anticipation for a report coming Friday, where the U.S. government will show how much hiring happened across the country last month. Economists expect it to show a cooldown in March from February.

“As always, the monthly jobs report will have the final say,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

In the stock market, Nvidia went from a gain of nearly 2% early in the day to a drop of 3.4%. It was the single heaviest weight on the S&P 500.

Lamb Weston dropped 19.4% after the frozen french fry maker said a transition to a new planning system hurt its ability to fill customer orders. It said the impact from the transition has likely passed, but it lowered its sales and profit forecast for the year. It also cited softer trends for restaurant traffic in the near term.

On the winning end of Wall Street, Conagra Brands climbed 5.4% after the owner of brands like Birds Eye and Duncan Hines reported a milder dip in revenue for the latest quarter than analysts expected. It also delivered a better profit than forecast.

ASX 200 poised to sink​

The Australian share market looks set to end the week deep in the red following another poor night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 63 points or 0.85% lower this morning.

U.S. stocks tumbled Thursday after a Federal Reserve official raised the possibility of delivering none of the cuts to interest rates this year that Wall Street has been banking on, if inflation worsens.

The S&P 500 dropped 1.2% for its worst day in seven weeks. Earlier in the day, a gain of nearly 1% had brought it to the cusp of its record set last week.

The Dow Jones Industrial Average swung 530 points lower, or 1.4%, after reversing a rise of nearly 300 points. The Nasdaq composite fell 1.4%.

 

[bigdog]

Stock market today: Wall Street gains ground following surprisingly strong US jobs report

Stocks posted solid gains on Wall Street as a strong report on employment showed the U.S. economy continues to chug along. The S&P 500 rose 1.1% Friday.

apnews.com

Wall Street gains ground following surprisingly strong US jobs report​

By DAMIAN J. TROISE and ALEX VEIGA
Updated 8:08 AM GMT+11, April 6, 2024

Stocks ended solidly higher and bond yields rose Friday as Wall Street welcomed a surprisingly strong U.S. jobs report.

The S&P 500 rose 1.1%, making up most of the loss from the previous day and moving closer to its record high set last week. The benchmark index still posted its first weekly loss in three weeks.

The Dow Jones Industrial Average rose 0.8% and the Nasdaq composite gained 1.2%.

Technology companies accounted for a big share of the rally. Chipmaking giant Nvidia rose 2.4% and Google’s parent company, Alphabet, rose 1.3%.

The gains were broad, with every sector in the S&P 500 finishing in the green.

U.S. employers added a surprisingly strong 303,000 workers to their payrolls in March, according to a government report on Friday. The strong job market has helped fuel consumer spending and earnings growth for businesses, amounting to strong economic growth overall.

The robust job market has also sparked concerns about inflation creeping higher, which could delay any rate cuts by the Federal Reserve. However, Friday’s report showed that wages rose a modest 0.3% for the month, which puts less upward pressure on inflation, and Wall Street still expects the Fed to begin cutting rates in June.

Friday’s gains followed a late-day slump in stocks on Thursday after a Fed official unsettled investors by questioning whether the central bank needs to cut rates at all this year amid a strong economy.

Treasury yields climbed following the jobs report. The yield on the 10-year Treasury rose to 4.40% from 4.31% just before the report was released. The two-year yield, which moves more on expectations for the Fed, rose to 4.75% from 4.65% just prior to the report.

The bond market may be signaling concern about interest rates staying higher for longer, but the stock market seems to be accepting the strong jobs report as good news, with consumer spending and corporate profits remaining important for investors.

“As long as the market gets one or two cuts and the Fed doesn’t leave rates unchanged, that’s good enough for equity investors,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

The Fed’s benchmark interest rate remains at its highest level in two decades as a result of historic rate hikes meant to tame inflation. The strategy has seemingly worked so far, with overall consumer prices falling drastically from a peak in 2022. Inflation fell to a rate of 3.2% in February. It was as a high as 9.1% in the middle of 2022.

Strong employment and consumer spending have raised concerns about getting inflation below 3% and heading toward the Fed’s target rate of 2% won’t be easy. They also raise the potential for inflation to reheat.

The Fed and investors will get another key update on inflation next week when the government releases its March report on consumer prices.

Wall Street has a slightly better than even bet that the Fed will trim rates at its June meeting, according to CME’s FedWatch Tool. That’s down from 65.9% on Thursday and 72% a month ago.

All told, the S&P 500 rose 57.13 points to 5,204.34. The Dow added 307.06 points to 38,904.04, and the Nasdaq gained 199.44 points to 16,248.52.

The market was mostly quiet elsewhere with the latest round of corporate earnings set to heat up in the next few weeks.

Johnson & Johnson slipped 0.1% after the pharmaceutical giant said it was buying the medical technology company Shockwave in a deal worth about $13 billion.

Apple edged up 0.5% after announcing that it is laying off more than 600 workers in California, marking its first big wave of post-pandemic job cuts amid a broader wave of tech industry consolidation. Companies in the tech sector have been slashing their workforces for two years, but the actions have had little impact on the broader employment market.

In energy markets, the price of U.S. crude oil settled 0.4% higher. It’s up just over 20% so far this year as demand remains robust.

Markets in Europe and Asia fell.

 

[bigdog]

ASX 200 expected to rebound​

The Australian share market looks set to push higher on Monday following a strong finish on Wall Street on Friday.

According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.5% higher.

Stocks ended solidly higher and bond yields rose Friday as Wall Street welcomed a surprisingly strong U.S. jobs report.

The S&P 500 rose 1.1%, making up most of the loss from the previous day and moving closer to its record high set last week. The benchmark index still posted its first weekly loss in three weeks.

The Dow Jones Industrial Average rose 0.8% and the Nasdaq composite gained 1.2%.

 

[bigdog]

Stock market today: Asia stocks rise with market focus on signs of interest rate cut

Asia stocks are mostly higher, with investors mainly focusing on a U.S. inflation report and what it means for interest rate cuts by the Federal Reserve.

apnews.com

Wall Street holds at a virtual standstill following last week’s sharp swerves​

By STAN CHOE
Updated 7:08 AM GMT+10, April 9, 2024

NEW YORK (AP) — U.S. stock indexes held at a virtual standstill Monday as trading calmed after a whirlwind couple of days left them a bit shy of their records.

The S&P 500 edged down by 1.95 points, or less than 0.1%, to 5,202.39. It was coming off a shaky stretch where a 1.2% drop immediately flipped to a 1.1% gain.

The Dow Jones Industrial Average tiptoed 11.24 points lower, or less than 0.1%, to 38,892.80, while the Nasdaq composite inched 5.44 points higher, or less than 0.1%, to 16,253.96.

Much of the focus has been on interest rates and when the Federal Reserve will lower them to ease pressure on the economy and financial system. A string of reports showing inflation and the economy have remained hotter than expected has forced Wall Street to delay forecasts for when relief on rates could arrive.

This upcoming week has several flashpoints that could further swing expectations. On Wednesday will come the latest monthly update on the inflation that U.S. consumers are feeling. Later in the week will be reports on inflation at the wholesale level and expectations for upcoming inflation among U.S. households.

Fed Chair Jerome Powell said recently he still expects cuts to interest rates this year, but the central bank needs additional confirmation inflation is heading toward its target of 2%. The Fed has been holding its main interest rate at the highest level since 2001, hoping to grind down enough on the economy and prices for investments to get inflation under control. The risk of holding rates too high for too long is that it could cause a recession.

Some Fed officials have raised the possibility of rates staying high for longer, if inflation remains stubborn. That has pushed many traders on Wall Street to cut back expectations for how many cuts to rates may arrive this year to two from three. They had already drastically pulled back their forecasts from the start of this year, when many were expecting six cuts or more.

Traders now see roughly a coin flip’s chance of the Fed cutting interest rates at its meeting in June, down from a better than 70% probability a month ago, according to data from CME Group.

Cuts to interest rates not only make borrowing easier for U.S. households and companies, they also encourage investors to pay higher prices for stocks and other investments. Stock prices have already leaped in part on such expectations.

U.S. stocks have remained near records despite diminishing expectations for rate cuts this year because of the hope that the strong economy will drive profits for companies. Profits and interest rates are the two main levers that set stock prices.

Such hopes have helped the stock market’s gains broaden out beyond the handful of Big Tech stocks responsible for the majority of last year’s gain. Energy producers in the S&P 500 have jumped 16% this year, after dropping nearly 5% last year, on expectations that a recent rebound in energy prices will mean fatter profits in the future.

It’s also possible that the U.S. economy can post strong growth while simultaneously seeing inflation cool. That’s what Goldman Sachs economist David Mericle is forecasting, in part because of elevated immigration of younger people who are working in construction and other industries that generally earn lower wages.

Friday’s surprisingly strong jobs report showed that workers’ average hourly wages were behaving as expected, even though employers hired far more workers than expected last month.

But critics say stock prices already look expensive given their huge run of more than 20% from November into March. That means “achieving ambitious earnings forecasts has become paramount,” according to Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management.

“Economic growth is good, but complacency around its implications is not,” she said.

To that end, this week will bring the start of the latest earnings reporting season. Delta Air Lines, JPMorgan Chase and other banks will headline the earliest days of the reporting period. Analysts are expecting companies across the S&P 500 to deliver a third straight quarter of growth.

Real-estate investment trusts helped lead the market after Apartment Income REIT said Blackstone agreed to buy it for about $10 billion in cash, including assumed debt. Apartment Income REIT, which also goes by AIR Communities, jumped 22.4%.

On the losing end of Wall Street was Trump Media & Technology Group. The company behind the Truth Social platform has seen its stock price swing sharply by the day, as experts say it’s moving more on the hopes of Trump fans than on the profit prospects of the company. It sank 8.4%.

In the bond market, Treasury yields rose to add to their gains for the year so far on diminished expectations for cuts to rates. The yield on the 10-year Treasury ticked up to 4.42% from 4.40% late Friday and from less than 3.90% at the start of the year.

In stock markets abroad, indexes mostly rose across Europe and Asia, though stocks fell 0.7% in Shanghai.

ASX 200 expected to rise again​

The Australian share market is expected to rise again on Tuesday despite a flat start to the week on Wall Street.

According to the latest SPI futures, the ASX 200 is poised to open the day 36 points or 0.4% higher.

U.S. stock indexes held at a virtual standstill Monday as trading calmed after a whirlwind couple of days left them a bit shy of their records.

The S&P 500 edged down by 1.95 points, or less than 0.1%, to 5,202.39. It was coming off a shaky stretch where a 1.2% drop immediately flipped to a 1.1% gain.

The Dow Jones Industrial Average tiptoed 11.24 points lower, or less than 0.1%, to 38,892.80, while the Nasdaq composite inched 5.44 points higher, or less than 0.1%, to 16,253.96.

 

[bigdog]

Stock market today: Asian markets are mixed after a slow day on Wall St ahead of US inflation update

Shares are mixed in Asia after U.S. stock indexes held at a near standstill ahead of some potentially market-moving reports.

apnews.com

Wall Street barely budges as it braces for Wednesday’s inflation report​

By STAN CHOE
Updated 7:04 AM GMT+10, April 10, 2024

NEW YORK (AP) — U.S. stock indexes held at a near standstill again on Tuesday, as traders made their final moves ahead of some potentially market-moving reports.

The S&P 500 edged up by 7.52 points, or 0.1%, to 5,209.91 after barely budging the day before. The Dow Jones Industrial Average slipped 9.13 points, or less than 0.1%, to 38,883.67, while the Nasdaq composite rose 52.68, or 0.3%, to 16,306.64.

Treasury yields eased in the bond market ahead of Wednesday’s highly anticipated update on inflation at the U.S. consumer level. This week will also bring other reports on inflation, while big U.S. companies will begin delivering their reports for how much profit they made during the first three months of the year.

The dominant question hanging over Wall Street is whether inflation will cool enough to convince the Federal Reserve to deliver the cuts to interest rates that traders are craving and have been betting on.

Some doubts have crept in following a series of hotter -than- expectedreports on the economy, and traders now expect just two or three cuts to rates this year. Some are even talking about the possibility of zero. That’s down from forecasts at the start of the year for six or seven cuts, according to data from CME Group.

The Fed’s main interest rate has been sitting at its highest level in more than two decades, and the fear is that rates left too high for too long can cause a recession.

If fewer cuts arrive this year, the onus will be on companies to deliver strong growth in profits to justify the nearly 25% leap for the S&P 500 since the end of October. Critics say stock prices look expensive on several measures, and either profits need to rise or interest rates need to fall to make them look more reasonable.

Strategists at Bank of America are looking for Wednesday’s inflation update to show a cooldown after ignoring food and energy prices, which can zigzag sharply. Such a result would likely increase traders’ expectations for a cut to rates in June, which the market currently sees as slightly better than a coin flip’s probability.

While a jump in oil prices this year has raised worries about a feedthrough into inflation, oil would likely need to rise “well above levels seen even in the peak Russia-Ukraine commodity price spike for a meaningful impact on core inflation,” the Bank of America strategists said in a BofA Global Research report.

A barrel of benchmark U.S. crude fell $1.20 to settle at $85.23, trimming its gain for the year so far below 20%. Brent crude, the international standard, fell 96 cents to $89.42 per barrel.

On Wall Street, Apple helped nudge the S&P 500 higher by rising 0.7%. It trimmed it loss for the year to a shade below 12%.

Norfolk Southern rose 1.3% even though the railroad reported preliminary earnings results for the first quarter that were shy of analysts’ expectations.

It agreed to pay $600 million in a class-action lawsuit settlement related to a fiery train derailment last year in eastern Ohio. The company said the agreement, if approved by the court, will resolve all class action claims within a 20-mile radius from the derailment and personal injury claims within a 10-mile radius for those choosing to participate.

Some of Wall Street’s largest losses came from the same stocks that have been the biggest winners in the market’s frenzy around artificial-intelligence technology.

Nvidia sank 2%, and because it’s one of the biggest stocks in the market, it was the single heaviest force weighing on the S&P 500. Super Micro Computer fell 2.6%, though its stock has still more than tripled so far this year.

Tilray Brands tumbled 20.7% after the cannabis company reported weaker revenue growth for its latest quarter than analysts expected.

In the bond market, the yield on the 10-year Treasury eased to 4.35% from 4.42% late Monday.

In Europe, stock indexes sank ahead of a decision by the European Central Bank on Thursday about interest rates. Many investors expect it to hold rates steady.

Stock indexes were mixed in Asia, with Tokyo’s Nikkei 225 jumping 1.1% but South Korea’s Kospi falling 0.5%.

ASX 200 expected to rise​

It looks set to be another positive session for the Australian share market on Wednesday following a decent night in the United States.

According to the latest SPI futures, the ASX 200 is expected to open the day 24 points or 0.35% higher.

U.S. stock indexes held at a near standstill again on Tuesday, as traders made their final moves ahead of some potentially market-moving reports.

The S&P 500 edged up by 7.52 points, or 0.1%, to 5,209.91 after barely budging the day before. The Dow Jones Industrial Average slipped 9.13 points, or less than 0.1%, to 38,883.67, while the Nasdaq composite rose 52.68, or 0.3%, to 16,306.64.

 

[bigdog]

Stock market today: Asian shares are mixed, taking hot US inflation data in stride

Asian shares are mixed after U.S. stocks fell on worries that what seemed like a blip in the battle to bring down inflation is turning into a troubling trend.

apnews.com

Wall Street falls after hot inflation report burns hopes for a June rate cut​

By STAN CHOE
Updated 7:31 AM GMT+10, April 11, 2024

NEW YORK (AP) — A washout on Wall Street sent stocks sinking Wednesday, as worries rose that what seemed like a blip in the battle to bring down inflation is turning into a troubling trend.

The S&P 500 dropped 0.9%, and the vast majority of stocks within the index fell. The Dow Jones Industrial Average tumbled 422 points, or 1.1%, and the Nasdaq composite sank 0.8%

Treasury yields also leaped in the bond market, raising the pressure on the stock market, after a report showed inflation was hotter last month than economists expected. It’s the third straight report to suggest progress on bringing high inflation down may be stalling. That hurts hopes that January’s and Februarys’ disappointing inflation data may not have been as bad as they seemed because of some technical reasons.

“There are still embers of inflation here and there in the economy,” said Joe Davis, chief global economist at Vanguard.

For shoppers, that’s painful because of the potential for even higher prices at the store. For Wall Street, it raises fears that the Federal Reserve will hold back on delivering the cuts to interest rates that traders are craving and have been betting on.

The S&P 500 had already leaped more than 20% since Halloween in part on expectations that the Federal Reserve would lower its main interest rate, which is sitting at its highest level in more than two decades. Such cuts would relax the pressure on the economy and encourage investors to pay higher prices for stocks, bonds, cryptocurrencies and other investments.

But the Fed has been waiting for more evidence to show inflation is heading sustainably down toward its goal of 2%. After an encouraging cooling last year, the fear now is that inflation may be stuck after January’s, February’s and March’s inflation reports all came in hotter than expected, along with data on the economy generally.

“Two data points don’t make a trend, but maybe three do,” said Brian Jacobsen, chief economist at Annex Wealth Management.

“If we get one more reading like this, Fed chatter will shift from when to cut to whether to hike.”

Prices for everything from bonds to gold fell immediately after the morning’s release of the inflation data.

The yield on the 10-year Treasury jumped to 4.54% from 4.36% late Tuesday and is back to where it was in November. The two-year yield, which moves more on expectations for Fed action, shot even higher and rose to 4.97% from 4.74%.

Traders sharply cut back on bets that the Fed could begin cutting rates in June. They now see just a 17% chance of that, down from nearly 74% a month ago, according to CME Group’s FedWatch tool.

Perhaps more importantly, traders shifted more bets toward the Fed cutting rates just twice over the course of this year. At the start of the year, they were forecasting six or more cuts through 2024.

High interest rates work to undercut inflation by slowing the economy and hurting investment prices. The fear is that rates left too high for too long can cause a recession.

Wall Street’s biggest losers on Wednesday included real-estate investment trusts, utility companies and other stocks that tend to get hurt most by high interest rates.

Real-estate stocks in the S&P 500 fell 4.1% for the biggest loss by far among the 11 sectors that make up the index. That included a 6.1% drop for office owner Boston Properties and a 5.3% tumble for Alexandria Real Estate Equities.

Homebuilders also slumped because higher interest rates could chill the housing industry by making mortgages more expensive. D.R. Horton fell 6.4%, Lennar sank 5.8% and PulteGroup dropped 5.2%.

All told, the S&P 500 fell 49.27 points to 5,160.64. The Dow dropped 422.16 to 38,461.51, and the Nasdaq composite fell 136.28 to 16,170.36.

Critics had already been saying the U.S. stock market looked too expensive by several measures. They said either interest rates needed to fall or profits for companies needed to rally to make stock prices look more reasonable. The hope on Wall Street is that the resilient U.S. economy could help prop up profits, even if it does diminish hopes for rate cuts.

Big U.S. companies are lining up on the runway to say how much profit they earned during the first three months of the year, and Delta Air Lines helped kick off the reporting season by delivering better-than-expected results.

The airline said it’s seeing strong demand for flights around the world, and it expects the strength to continue through the spring. But it also refrained from raising its profit forecast for the full year. Its stock climbed as much as 4% during the morning before flipping to a loss of 2.3%.

The banking industry will soon take the spotlight in earnings season, with JPMorgan Chase and Wells Fargo among those reporting on Friday.

In stock markets abroad, indexes were mixed across much of Europe. In Asia, stocks rose 1.9% in Hong Kong but fell 0.7% in Shanghai after Fitch Ratings lowered its outlook for China’s public finances.

ASX 200 expected to tumble​

The Australian share market looks set for a disappointing session on Thursday following a poor night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open the day 65 points or 0.8% lower this morning.

A washout on Wall Street sent stocks sinking Wednesday, as worries rose that what seemed like a blip in the battle to bring down inflation is turning into a troubling trend.

The S&P 500 dropped 0.9%, and the vast majority of stocks within the index fell. The Dow Jones Industrial Average tumbled 422 points, or 1.1%, and the Nasdaq composite sank 0.8%

All told, the S&P 500 fell 49.27 points to 5,160.64. The Dow dropped 422.16 to 38,461.51, and the Nasdaq composite fell 136.28 to 16,170.36.

 

[bigdog]

Stock market today: Asia stocks are mostly lower after Wall St rebound led by Big Tech

Asia stocks are mostly lower after gains for Big Tech shares helped U.S. stock indexes claw back much of their slide from the day before.

apnews.com

Wall Street rebounds following its slide as Big Tech takes the reins again​

By STAN CHOE
Updated 7:24 AM GMT+10, April 12, 2024

NEW YORK (AP) — Jumps for Big Tech on Thursday helped U.S. stock indexes claw back much of their slide from the day before.

The S&P 500 rose 38.42 points, or 0.7%, to 5,199.06 and recovered most of its prior loss, caused by worries that interest rates may stay high for a while. The Nasdaq composite charged up by 271.84, or 1.7%, to a record 16,442.20. The Dow Jones Industrial Average, which has less of an emphasis on tech, was the laggard. It slipped by 2.43 points, or less than 0.1%, to 38,459.08.

Apple was the strongest force pushing the market upward, and it climbed 4.3% to trim its loss for the year so far. Nvidia was close behind, as it keeps riding a frenzy around artificial-intelligence technology. The chip company rose 4.1% to take its gain for the year to 83%. Amazon added 1.7% and set a record after topping its prior high set in 2021.

It’s a return to last year’s form, when a handful of Big Tech stocks was responsible for the majority of the market’s gains. This year, the gains had been spreading out. That is, until worries about stubbornly high inflation sent a chill through financial markets.

In the bond market, which has been driving much of Wall Street’s action, Treasury yields held relatively steady following a mixed batch of data on inflation and the U.S. economy.

When or whether the Federal Reserve will deliver the cuts to interest rates that traders are craving has been one of the main questions dominating Wall Street. After coming into the year forecasting at least six cuts to rates, traders have since drastically scaled back their expectations. A string of hotter - than - expected -reports on inflation and the economy has raised fears that last year’s progress on inflation has stalled. Many traders are now expecting just two cuts in 2024, with some discussing the possibility of zero.

A report on Thursday morning showed inflation at the wholesale level was a touch lower last month than economists expected. That’s encouraging, but the data also showed underlying trends for inflation were closer to forecasts or just above. Those numbers strip out the effects of fuel and some other prices that are notoriously jumpy, and economists say they can give a better idea of where inflation is heading.

The update doesn’t offset Wednesday’s disappointingly high report on inflation at the U.S. consumer level, “but it may ease investor nerves, at least in the short term,” said Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

A separate report said fewer U.S. workers applied for unemployment benefits last week. It’s the latest signal that the job market remains remarkably solid despite high interest rates.

The Federal Reserve has been holding its main interest rate at the highest level since 2001 in hopes of pushing down enough on the economy and investments prices to get high inflation under control. The fear is that rates held too high for too long because of stubbornly high inflation can cause a recession.

Some investors are now warning that any cuts to rates by the Fed could be seen as a red flag more than anything, and may happen only if the economy and job market are weakening enough to require an extra lift.

All this is coming at a time when critics had already been calling the U.S. stock market too expensive following its leap of more than 20% since Halloween. For stock prices to look more reasonable, without requiring sharp drops, either interest rates would need to fall or corporate profits would need to strengthen.

Earnings reporting season is just underway, as companies tell investors how much they earned during the first three months of the year.

Rent the Runway more than doubled after reporting slightly better revenue for its latest quarter than expected. The company, which allows customers to rent designer clothes, also said it expects to break even on a cash-flow basis this upcoming fiscal year. Its stock soared 161.9%.

Alpine Immune Sciences soared 36.9% after Vertex Pharmaceuticals agreed to buy the biotechnology company for $4.9 billion in cash. Vertex added 0.7%

CarMax dropped to one of the largest losses in the S&P 500 after it reported weaker profit for its latest quarter than analysts expected. Higher interest rates on car loans are making the business tougher, along with tightened lending standards and low consumer confidence. Its stock skidded 9.2%.

In the bond market, the yield on the 10-year Treasury rose to 4.57% from 4.55% late Wednesday. The two-year yield, which more closely tracks expectations for Fed action, fell to 4.94% from 4.97%.

In stock markets abroad, indexes fell modestly across Europe after the European Central Bank held its main interest rate steady.

Stocks were mixed in Asia, where South Korea’s Kospi edged up by 0.1% after the ruling conservative party suffered a crushing defeat in a parliamentary election.

ASX 200 expected to fall​

The Australian share market looks set to end the week in the red despite a decent night on Wall Street.

According to the latest SPI futures, the ASX 200 is expected to open 29 points or 0.3% lower this morning

Jumps for Big Tech on Thursday helped U.S. stock indexes claw back much of their slide from the day before.

The S&P 500 rose 38.42 points, or 0.7%, to 5,199.06 and recovered most of its prior loss, caused by worries that interest rates may stay high for a while.

The Nasdaq composite charged up by 271.84, or 1.7%, to a record 16,442.20.

The Dow Jones Industrial Average, which has less of an emphasis on tech, was the laggard. It slipped by 2.43 points, or less than 0.1%, to 38,459.08.