Last Updated: 4:07 PM EST
Stock indices finished today’s trading session mixed as geopolitical tensions and stubborn inflation caused uncertainty. The Nasdaq 100 (NDX) and the S&P 500 (SPX) fell 2.05% and 0.88%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) gained 0.56%.
Furthermore, Chicago Fed President Austan Goolsbee noted on Friday that progress on inflation has stalled and that it would be too early to consider reducing interest rates. His now hawkish stance is notable because he was previously one of the more dovish Fed members.
He’s the fourth member this week to come out with a cautious view, following Federal Reserve Chair Jay Powell, Cleveland Fed President Loretta Mester, and New York Fed President John Williams.
First Published: 4:38 AM EST
U.S. futures were trading lower on Friday morning due to escalated Middle East tensions and increasing uncertainty about the interest rate trajectory. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down by 0.7%, 0.52%, and 0.46%, respectively, at 4:26 a.m. EST, April 19.
All three major indices, the Nasdaq Composite, S&P 500, and Dow Jones, are headed to close lower this week, having lost 3.6%, 2.2%, and 0.6%, respectively, in the past four days. The pullback is triggered by expectations of the Federal Reserve delaying interest rate cuts until September, or potentially refraining from any cuts in 2024.
According to FX strategist at UBS, Vassili Serebriako, the strong U.S. data suggests that the central bank will not cut interest rates any time soon. In addition, Justyna Zabinska-La Monica, senior manager at the Conference Board, is concerned about the impact of growing consumer debt, high interest rates, and persistent inflation pressures on economic activity in 2024.
In today’s earnings calendar, some of the major companies scheduled to report results include Procter & Gamble (PG), American Express (AXP), Schlumberger (SLB), and Fifth Third Bancorp (FITB).
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.59%. At the same time, WTI crude oil futures trended higher, hovering near $82.86 per barrel as of the last check, due to concerns about potential oil supply disruptions following Israel’s retaliatory attack on Iran.
Elsewhere, European indices opened lower today as investors were concerned about the timing of interest rate cuts and rising geopolitical tensions.
Asia-Pacific Markets Closed Lower Today
Asia-Pacific markets ended the trading day in the red amid growing tensions between Iran and Israel.
Hong Kong’s Hang Seng index was down 0.99%. Similarly, China’s Shanghai Composite and Shenzhen Component indices fell by 0.29% and 1.04%, respectively. Further, Japan’s Nikkei and Topix indices declined by 2.66% and 1.91%, respectively.
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