U.S. stock index futures showed mainly positive movements on Friday, which was a change from their previous trend following the Federal Reserve’s recent announcement about a higher interest-rate forecast for the next year, made on Wednesday.
What’s happening
In English, the paragraph can be paraphrased as follows: Last Thursday, the Dow Jones Industrial Average decreased by 370 points, representing a decline of 1.08% and reaching a value of 34070. Likewise, the S&P 500 went down by 72 points, equivalent to a 1.64% decline, and settled at 4330. The Nasdaq Composite also experienced a drop of 245 points, resulting in a 1.82% decrease, and ended with a final value of 13224.
The S&P 500 has experienced a decline of 2.8% in the past three days.
What’s driving markets
Stocks seemed to find stability on Friday after two consecutive days of decline sparked by the Federal Reserve’s announcement. The Fed chose to keep its policy interest rates unchanged, however, it raised its projected rates for 2024 by 0.5%.
On Thursday, new data revealed a surprising decline in the number of individuals seeking unemployment benefits, which suggests a strong employment market. As a result, the 2-year Treasury yield attained its highest point since 2006, while the 10-year yield reached its highest level since 2007.
Saxo Bank analysts mentioned that the impact of the recent statement by the U.S. Federal Reserve, indicating a prolonged period of high interest rates, is still ongoing. As a result, Wall Street witnessed its biggest drop in half a year, with the yield on the 10-year government bonds hitting 4.5% for the first time since 2007. Moreover, the chances of future interest rate cuts have decreased to only 75 basis points.
Reports suggest that both the S&P 500 and the Nasdaq 100 closed at levels of technical support, potentially resulting in a minor rebound despite the prevailing bearish trend.
After a busy week of central bank decisions, the Bank of Japan decided to keep its loose monetary policy stance the same. This caused the dollar to become stronger compared to the yen, with the USDJPY exchange rate increasing by 0.41%.
The initial purchasing managers index reports for the manufacturing and service sectors will be included in the economic calendar of the United States on Friday. S&P Global will be providing these reports. Furthermore, Fed Gov. Lisa Cook will give a speech at a conference centered around artificial intelligence.
Companies in focus
The Dow Jones Industrial Average's performance as a predictor of U.S. presidential election outcomes warrants…
Yardeni Research remains unconvinced that recent stimulus measures will make China a more attractive investment…
Hello, traders! Today, I’m excited to guide you through the Sonic Trading System, an advanced…
Matt Rowe, head of portfolio management and cross-asset strategies at Nomura Capital Management, warns that…
This rise is largely due to stronger-than-expected economic data, including falling unemployment and persistent inflation.…
The U.S. stock market recently celebrated the two-year anniversary of its bull run, with the…