Last Updated: 4:15 PM EST
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Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.02%, 1.04%, and 0.76%, respectively. Furthermore, the U.S. 10-Year Treasury yield increased to 3.91%, an increase of 11 basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 3.99%.
The Atlanta Federal Reserve updated its latest GDPNow reading, which allows it to estimate GDP growth in real-time. The “nowcast” becomes more accurate as more economic data is released throughout the quarter. Currently, it estimates that the economy will expand by about 2.9% in the third quarter.
This is higher than its previous estimate of 2.5%, which can be attributed to recent releases from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau, the U.S. Bureau of Economic Analysis, and the Institute for Supply Management.
Nevertheless, the unemployment rate is continuing to rise. Therefore, it’ll be interesting to see what the actual GDP growth will be and how it’ll change going forward as the Fed’s inflation fight continues to impact the economy.
First Published: 4:47 AM EST
U.S. futures bounced back on Tuesday morning after major indices recorded their biggest one-day declines in nearly two years. The broad sell-off was triggered by recession fears. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) were up by about 1.02%, 0.79%, and 0.48%, respectively, at 4:20 a.m. EST, August 6.
On Monday, U.S. stocks witnessed a dramatic trading session. The Nasdaq Composite, the S&P 500, and the Dow Jones indices declined 3.4%, 3%, and 2.6%, respectively. This marked their highest single-day decline since September 13, 2022. Importantly, the Magnificent Seven stocks were hit hard yesterday as they collectively lost over $650 billion in market cap.
In after-hours action, Palantir (PLTR) stock surged more than 12% in extended trading after it raised Q3 guidance. Moreover, Lucid (LCID) gained 6% after the company reported 33% revenue growth for the second quarter.
Today, investors are looking forward to results from several key companies, including Uber (UBER), Airbnb (ABNB), Rivian (RIVN), Supermicro (SMCI), Reddit (RDDT), and Amgen (AMGN). On the economic front, no major reports are scheduled for release today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 3.85% at the time of writing. Also, the WTI crude oil futures are trending higher, hovering near $73.06 per barrel as of the last check.
Elsewhere, European indices opened higher on Tuesday as investors shook off yesterday’s pessimism.
Asia-Pacific Markets Traded Higher on Tuesday
Most Asia-Pacific indices saw gains today, reflecting a rebound in global market sentiment. Particularly, Japan’s Nikkei index made a dramatic recovery, rising over 10% after a 12% drop yesterday. This surge, driven by renewed investor confidence in technology and artificial intelligence stocks, marked the index’s largest daily gain since October 2008.
China’s Shenzhen Component Index and the Shanghai Composite indices ended up by 0.23% and 0.82%, respectively. Similarly, Japan’s Nikkei and Topix indices finished higher by 10.23% and 9.3%, respectively. However, Hong Kong’s Hang Seng index closed 0.18% lower.
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