The market rally is at its most fragile point in months. The S&P 500 ( ^GSPC ) ended Friday below 5,000, its first close below that mark since late February. Meanwhile, the Nasdaq Composite ( ^IXIC ) dropped more than 5% on the week while the Dow held flat. This week, critical readings on economic growth and inflation, as well as the start of Big Tech earnings, will determine if the malaise continues. On the economic data side, the advanced reading of first quarter economic growth is slated for Thursday, followed by the March reading of the Personal Consumption Expenditures index, the Fed's preferred inflation gauge, on Friday.
The S&P 500, Dow Jones, and Nasdaq dipped slightly after a strong start to 2024. Traders are cautious ahead of the release of the Personal Consumption Expenditures price index. The Fed's bullish economic forecasts have boosted market sentiment. Shares of AMD and Intel fell on reports of China phasing out their chips. Boeing's CEO announced his departure amidst safety concerns. Electric vehicle startup Fisker sees share halt and decline after failed talks with automaker. Foot Locker struggles with sales and margins, but analyst predicts rebound. Chipotle's CEO Brian Niccol discusses growth and tech initiatives. Investors monitor Fed commentary and await inflation data. Mega-cap tech stocks drop after EU investigations and US antitrust lawsuit against Apple.
Wall Street surged after a report on US inflation showed a slowdown, leading to hopes that the Federal Reserve may be done with interest rate hikes. The S&P 500 increased by 1.9%, the Dow rallied 489 points, and the Nasdaq composite soared 2.4%. Technology and high-growth stocks performed particularly well. Smaller companies also saw a boost in their stocks. Additionally, Home Depot's sales declined due to inflation concerns, but its quarterly performance exceeded expectations.
US stocks, including the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite, are on track to end a successful first quarter with record highs. The S&P and Nasdaq have surged around 10% this year, with signs of a broadening rally. Despite Tesla's recent decline, the stock market remains strong. AMC shares dropped 12% after announcing an equity distribution agreement. Energy stocks have outperformed, with the S&P 500 Energy Select ETF rising 9%. General Motors' CEO, Mary Barra, discussed the challenges of scaling up electric vehicle production.
Cathie Wood has a bold new prediction for the price of bitcoin, saying recent developments could see millions more added to her existing target. "Our government can't keep its pants on and stop spending money. That went from a problem in the early 2000s to a crisis with Donald Trump and Joe Biden." The S&P 500 has been on a record-setting rally this week, up almost 3% since Monday. The Dow Jones and Nasdaq are also poised for weekly wins.
Wall Street saw a retreat as hopes for an interest rate cut faded and geopolitical tensions rose in Big Tech. The S&P 500 fell about 0.9%, marking its sixth straight day of losses, while the Nasdaq Composite slid 2.1%. Disappointing earnings from Netflix impacted market sentiment with shares dropping 9%. Tech stocks like Nvidia and Amazon also saw declines. The market initially dipped due to Israel's retaliatory strike on Iran. Federal Reserve uncertainty added pressure, with officials taking a more hawkish stance. US government bonds and commodities like oil and gold were also affected.
Stocks rose on Friday as investors responded positively to a strong jobs report in the US. The Dow Jones Industrial Average gained about 0.8%, the S&P 500 increased by 1.1%, and the Nasdaq Composite rose by 1.2%. Despite this daily increase, all three major indexes saw losses for the week. Concerns over potential interest rate cuts by the Federal Reserve linger amidst market uncertainty. Oil prices remained high due to tensions in the Middle East. Tech stocks led the market gains on Friday, but overall, the week was marked by fluctuating stock prices and nervousness among investors.
The Dow snapped a six-day losing streak on Tuesday as investors digested a "higher-for-longer" interest rate mantra from the Federal Reserve. The Dow Jones Industrial Average ( ^DJI ) finished the day up 0.2%, or more than 50 points, following comments from Federal Reserve chair Jerome Powell, who said it will likely take "longer than expected" for the central bank to be confident in its inflation fight. The S&P 500 ( ^GSPC ) and tech-heavy Nasdaq Composite ( ^IXIC ) closed down 0.2% and 0.
US stocks surged on Thursday to fresh records, continuing the momentum in the wake of the Federal Reserve's latest monetary policy update. The S&P 500 and the Dow Jones Industrial Average claimed fresh record highs, with the Dow spiking by 269 points. The jumps add to gains that followed Jerome Powell's press conference on Wednesday, in which he said the central bank remains committed to its 2% inflation target, and that policymakers will monitor incoming data closely before its next moves. According to the dot plot of interest rate projections for the coming years, officials still expect three rate cuts in 2024. CME's FedWatch Tool shows traders have ramped up bets for a June rate cut over the last 24 hours, with odds for easing to start in June jumping from 55% to almost 70%.
This article is a summary of the closing milestones of the Nasdaq Composite, a United States stock market index. Since first opening at 100.00 on February 5, 1971, the Nasdaq Composite has increased, despite several periods of decline, most recently after the financial crisis.
Gross is shorting 5- and 10-year Treasurys as long-dated yields are likely to climb, he wrote in his latest investment outlook. The S&P 500 rallied more than 2% this week, fueled by the Fed's dovish outlook and nod to rate cuts on the horizon. Cathie Wood has a bold new prediction for the price of bitcoin, saying recent developments could see millions more added to her existing target. Stocks look like they're in the "most extreme speculative bubble in US financial history," investing legend John Hussman said this week. "Our government can't keep its pants on and stop spending money.
The S&P 500 is up 10% for the year, significantly outperforming developed markets outside the U.S. Since 2019, the S&P has gained 48%, compared to just 10% for other developed markets. Earnings growth for the S&P 500 is a key driver, with earnings up nearly 47 times that of the broader global market over 17 years. Strong consumer spending and a solid jobs market fuel the U.S. economy, while stock buybacks and technology companies dominate the S&P 500 movement.
The S&P 500 started the second quarter down 0.8% for the week, driven by fears of persistent inflation as the Personal Consumption Expenditures price index rose to 2.5% in February, potentially affecting future interest rate cuts by the Fed. Long-term bond yields surged to a four-month high, hitting 4.36%. Some Fed officials indicated fewer rate cuts this year, with forecasts suggesting rates could stay above 5% in 2024.
Stocks on Wall Street experienced a decline on Friday due to worries about inflation and geopolitical tensions. The Dow Jones Industrial Average fell by 1.24%, the S&P 500 by 1.46%, and the Nasdaq Composite by 1.62%. Major bank shares also dropped, with JPMorgan Chase decreasing over 6% and Wells Fargo slipping 0.4%. Oil prices rose as reports indicated Israel preparing for a potential direct attack by Iran. This news, along with U.S. import data, fueled inflation concerns in the market.
US stocks kicked off 2024's second quarter on wobbly feet Monday. The S&P 500 ( ^GSPC ) fell 0.4%, while the Dow Jones Industrial Average ( ^DJI ) fell 0.7%. The tech-heavy Nasdaq Composite ( ^IXIC ) dipped below the flatline, erasing earlier session gains.
Stocks took a dive after a key inflation report revealed higher-than-expected price increases, raising concerns that the Federal Reserve will keep rates higher for longer than anticipated. The Dow Jones Industrial Average slid 525 points, or 1.4%, while the S&P 500 declined 1.4% and the Nasdaq Composite lost roughly 1.8%. The latest Consumer Price Index showed that prices rose by 3.1% for the 12 months ended in January, with economists expecting inflation to ease to 0.2% on a monthly basis. Traders now expect the Federal Reserve to cut its benchmark lending rate in June or July.
The Federal Reserve Bank of New York survey shows Americans expect 3% inflation in one year, 2.9% in three years, and 2.6% in five years, remaining above the Fed's 2% target. Fed Chair Powell emphasizes the need to conquer inflation before considering interest rate reductions. The survey also indicates concerns about job security and finding new employment. Market uncertainty persists with speculation on potential rate cuts this year.
Stocks rose ahead of a busy week for central banks around the world that could dictate where interest rates go next. The S&P 500 added 0.6% Monday, coming off its first back-to-back weekly losses since October. It pulled close to its all-time high set early last week. The Dow Jones Industrial Average rose 0.
Asian shares traded mixed as U.S. interest rates are expected to remain high. Japan's Nikkei 225 dipped, Australia's S&P/ASX 200 edged up slightly, and South Korea's Kospi was stable. Federal Reserve Chairman Jerome Powell mentioned the central bank's cautious approach to cutting interest rates. The S&P 500 and Nasdaq fell, with Treasury yields rising. Traders anticipate one or two rate cuts this year, impacting stock prices. Donald Trump's social media company stock dropped. Energy trading saw U.S. crude and Brent crude prices decline, while currency trading showed minor shifts.
US stocks tumbled on Wednesday as inflation data for March revealed a 3.5% increase in consumer prices over the past year, the highest gain in six months. The Dow closed 1.1% lower, the S&P 500 lost 1%, and the Nasdaq Composite dropped by 0.8%. The hotter-than-expected report may delay anticipated rate cuts by the Federal Reserve, prompting concerns among investors. Only 16.5% of investors expect a rate cut at the June meeting, signaling a shift in market expectations.
Stocks fell on Friday with the Nasdaq Composite sliding 1.3%, the S&P 500 shedding 1%, and the Dow Jones Industrial Average falling 0.9% or more than 300 points. Tech stocks, previously leading the rally, lost ground amid fears of inflation and worries about Federal Reserve policies. Big banks like BlackRock, JPMorgan, Wells Fargo, and Citigroup reported mixed results, with the financial sector underwhelming investors. Meanwhile, precious metals like gold and silver rallied to fresh highs as investors sought safety amidst Middle East tensions and inflation concerns.
Big Tech stocks, including Apple and Amazon, led to a rise in U.S. stock indexes with the S&P 500 increasing by 0.7% and the Nasdaq composite setting a record by jumping 1.7%. The Dow Jones Industrial Average edged down slightly. Treasury yields remained steady amidst mixed economic data.
Federal Reserve Vice Chair Philip Jefferson suggested that the central bank's key rate may have to remain at its peak for a while to bring down persistently elevated inflation. Jefferson expects inflation to continue to slow this year and stated that keeping rates steady at the current level could help cool inflation. He omitted any mention of future rate cuts and highlighted the importance of reaching the Fed's 2% target inflation level. U.S. consumer inflation was reported at 3.5% recently. The remarks indicate a potential shift from the previously forecasted rate cuts by the Fed.
US stocks rose Monday as worries over the fallout from Iran's attack on Israel eased, allowing focus to return to earnings season and inflation risks to rate-cut hopes. The S&P 500 ( ^GSPC ) added roughly 0.9%, while the Dow Jones Industrial Average ( ^DJI ) moved up nearly 1%, or over 360 points, after ending the week with sharp losses . The tech-heavy Nasdaq Composite ( ^IXIC ) was up 0.6%.
The Federal Reserve's interest rate forecasts are flashing warning signs of a recession just around the corner, top economist David Rosenberg says. "The Fed doesn't want to say this explicitly, but it is actually saying (in not so many words) that a recession is very likely coming our way," Rosenberg said in a note on Thursday. Despite the Fed's optimistic forecast of 2.1% GDP growth and a 4% unemployment rate, Rosenberg sees officials' prediction of a sharp drop in the median federal funds rate as a recession indicator. Related stories The Fed anticipates the median federal funds rate will drop by 150 basis points to 3.
(Bloomberg) -- European equity futures tracked the grim Asian session as signs of fading momentum in Chinas economy added to angst over elevated US interest rates and tensions in the Middle East. Most Read from Bloomberg Beyond the Ivies: Surprise Winners in the List of Colleges With the Highest ROI Trump Medias $5.3 Billion Selloff Deepens as 270% Rally Fizzles S&P 500 Breaks Below 5,100 as Big Tech Sells Off: Markets Wrap Irans Attack on Israel Sparks Race to Avert a Full-Blown War Apple Faces Worst iPhone Slump Since Covid as Rivals Rise The Euro Stoxx 50 contract dropped over 1%, while contracts on US stocks were steady after the S&P 500 slid to the lowest in more than a month overnight following robust retail sales data. In Asia, a gauge of regional stocks tumbled the most since August, with every major market seeing broad-based losses, after a slew of Chinas economic indicators showed that the nations economic recovery remains patchy. A global index of emerging market currencies dropped, with South Koreas won and the Indonesia rupiah weakening to multi-year lows.
Federal Reserve Chair Jerome Powell stated that while the Fed plans to cut interest rates this year, it will wait for further evidence of improving inflation and confidence in approaching the 2% target before doing so. The Fed's response to high inflation in 2022 led to 11 rate hikes, bringing inflation down to 3.2% from a peak of 9.1%. Despite signals of three rate cuts, Powell notes the economy's strength allows waiting for inflation data. Market experts debate the possibility of no rate cuts this year.
The latest US inflation report revealed a 2.5% increase in the Personal Consumption Expenditures price index for the 12 months ending in February, driven by a 2.3% rise in energy prices. The Fed remains further from its 2% inflation goal. Core inflation, excluding energy and food, slowed slightly to 2.8%. Monthly price increases saw a slight drop to 0.3%. Goods prices rose by 0.5%, outpacing services prices at 0.3%. The rise in service prices, driven by labor shortages, remains a challenge despite historic rate increases. Consumer spending accelerated by 0.8% in the latest data.
Stocks drifted to a mixed close on Wall Street as a lull carried through financial markets worldwide. The S&P 500 edged down 0.2% Wednesday, a day after setting an all-time high. The Dow Jones Industrial Average rose 0.1%, and the Nasdaq composite fell 0.
Citigroup economists Andrew Hollenhorst and Veronica Clark believe the Fed's reaction function is more dovish than the consensus, predicting five quarter-point rate cuts this year. They expect the Fed to adjust policy rates lower in June or July based on upcoming readings of the core personal consumption expenditures index. Chair Jerome Powell dampened expectations of rate cuts, stating that inflation hasn't eased enough. The Fed aims for a 'soft landing' for the US economy amidst challenges in steering monetary policy.
Despite inflation cooling from 9% in mid-2022 to 3.2%, it remains above the Fed's target of 2%, resulting in high interest rates for borrowers, including on credit cards and mortgage loans. Mortgage rates have slightly declined, making home buying more affordable. As the spring homebuying season begins, prospective buyers are seeking pre-approval for mortgage loans. Understanding lender details, fees, and requirements is crucial for making informed decisions. It is important to ask about interest rates, annual percentage rate (APR), and discount points when exploring mortgage options.
The Federal Reserve reported a record $114.3 billion loss in 2023 as it faced challenges managing its short-term interest rate target, following a net income of $58.8 billion in 2022. Despite the loss, the Fed reiterated that it does not hinder its ability to operate or conduct monetary policy. The Fed's move to raise the federal funds rate disrupted central bank finances with interest expenses for banks hitting $176.8 billion in 2023. The Fed can create money to fund its operations, holding a deferred asset of $157.8 billion as of March 2023.
S&P Global Ratings' global chief economist Paul Gruenwald forecasts the Fed issuing three rate cuts in 2024, followed by up to five cuts in 2025, totaling a potential two percentage point decrease in interest rates over 21 months. The slowing economy and nearing inflation to the Fed's 2% target are key factors. Other Wall Street forecasters differ, warning of prolonged high rates. Various Fed officials, including Atlanta Fed President Raphael Bostic, suggest differing approaches to rate cuts. Fed Chair Jerome Powell emphasizes the need for sustainable inflation decline before determining rate adjustments.
Federal Reserve Chair Jerome Powell stated that the Fed is not in a rush to cut interest rates despite investors' expectations, citing strong employment data and the need for inflation to reach closer to 2%. Powell expressed concerns about cutting rates too early, highlighting the risks of inflation popping back up. He also mentioned that waiting too long to cut rates could potentially trigger a recession. Powell noted that he does not foresee rates falling to pre-pandemic levels in the near future. Additionally, Powell emphasized the importance of the Fed's independence from politics in achieving its mandated mission of price stability and maximum employment.
After the latest Federal Reserve meeting, officials hinted at potential rate cuts three times this year, leading to a slight easing of 30-year mortgage rates to the mid-6% range. As inflation slows and the Fed lowers rates, mortgage rates are anticipated to decrease, possibly ahead of the Fed's June meeting. Despite a recent rise in rates throughout most of 2023, they are expected to trend downwards as the economy normalizes. The Consumer Price Index's 3.2% increase in the last year signals a positive trend for mortgage rates.
Average 30-year mortgage rates have dipped below 6.5% after peaking at 6.7% last week. The rates are anticipated to continue dropping as inflation slows and the labor market stabilizes. Federal Reserve officials predict a decline in inflation, leading to potential cuts in the federal funds rate, which would further reduce mortgage rates. Investors are pricing in a rate cut at the Fed's June meeting. However, until there is concrete evidence of moderated price growth, mortgage rate movements may be unpredictable. Last week, the average 30-year fixed mortgage rate was 6.87%, showing a 13-basis-point increase from the previous week.
Amazon shares hit an all-time high of $187.29 before closing at $185.19, close to their previous record in July 2021. Big Tech earnings season is expected to bring in profits exceeding $90 billion. Rivals like Meta, Microsoft, and Nvidia have also reached record highs recently. Tesla, however, has seen a decline in shares and deliveries. Microsoft is investing in an AI hub in London after deeming Britain unfavorable for investment previously. Analysts predict Amazon's strong performance to continue, with a potential stock price increase to $215.
The Nasdaq Composite (ticker symbol ^IXIC) is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange. Along with the Dow Jones Industrial Average and S&P 500, it is one of the three most-followed stock market indices in the United States. The composition of the NASDAQ Composite is heavily weighted towards companies in the information technology sector. The Nasdaq-100, which includes 100 of the largest non-financial companies in the Nasdaq Composite, accounts for over 90% of the movement of the Nasdaq Composite.The Nasdaq Composite is a capitalization-weighted index; its price is calculated by taking the sum of the products of closing price and index share of all of the securities in the index. The sum is then divided by a divisor which reduces the order of magnitude of the result.
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