Last Updated: 4:20 PM EST
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 1.55%, 0.97%, and 0.3%, respectively. This was likely due to falling oil prices, which saw WTI crude oil tumble 4.6%.
Earlier today, Federal Reserve Bank of Atlanta President Raphael Bostic mentioned that while the U.S. labor market is slowing down, it’s still creating more jobs than needed to keep up with population growth.
Bostic warned that this strong economy could interfere with the Fed’s efforts to control inflation, which remains higher than the 2% target. He also pointed out that although inflation is easing, it will be a slow process, and further rate cuts could be on the table if job data weakens significantly.
On a similar note, Federal Reserve Governor Adriana Kugler backed the recent half-point rate cut and said she would support more cuts if inflation keeps dropping. She also noted that the Fed’s focus might need to shift beyond just inflation to ensure that economic growth and job creation continue.
The pace of future interest rate cuts is still a hot topic, with markets anticipating a 0.25% rate cut in November.
First Published: 3:37 AM EST
U.S. stock futures were steady on Tuesday morning after yesterday’s weak trading session. Futures on the S&P 500 (SPX), the Dow Jones Industrial Average (DJIA), and the Nasdaq 100 (NDX) were down by about 0.04%, 0.01%, and 0.08%, respectively, at 2:59 a.m. EST, October 8.
On Monday’s regular trading session, major U.S. indices retreated, with the Dow Jones down 0.9%, the S&P 500 losing 1%, and the Nasdaq Composite falling 1.2%. Investors should note that rising bond yields and increasing oil prices put downward pressure on the market. The 10-year Treasury yield climbed above 4%, reaching its highest level since early August. Further, oil prices rose amid concerns about supply disruptions in the Middle East.
Moving to major stock market news, Amazon (AMZN) was down 3% yesterday after Wells Fargo (WFC) analyst Ken Gawrelski downgraded the stock’s rating to Hold. Further, Apple (AAPL) declined 2.3% following a rating downgrade by Jefferies analyst Edison Lee on concerns over the new AI-enabled iPhones.
At the same time, Super Micro Computer (SMCI) surged 16% after announcing the installation of over 100,000 GPUs equipped with its liquid cooling systems in AI factories. Also, Pfizer (PFE) gained 2.2% following news that activist investor Starboard Value took a $1 billion stake in the company.
Today, investors will be closely watching commentary from Boston Federal Reserve President Susan Collins and Atlanta Fed President Raphael Bostic for further clues on the rate outlook. On the earnings front, PepsiCo (PEP) is scheduled to release its third quarter 2024 results today.
Meanwhile, the U.S. 10-year treasury yield was down slightly at the time of writing, floating near 3.998%. At the same time, WTI crude oil futures trended lower, hovering near $75.80 per barrel as of the last check.
Elsewhere, European markets are expected to open mixed today. Ongoing geopolitical tensions in the Middle East continue to raise concerns about their potential impact on oil markets, supply chains, and the global economy.
Asia-Pacific Markets Traded Mixed on Tuesday
Asia-Pacific indices were mixed today. Japanese stock traded lower as investors reacted to data revealing a 0.6% drop in real wages for August and a 1.9% decline in household spending. In contrast, Chinese markets reopened strongly after the Golden Week holiday.
At the time of writing, Hong Kong’s Hang Seng index was down 7.73%. Further, Japan’s Nikkei 225 and Topix indices finished lower by 1% and 1.47%, respectively. However, China’s Shanghai Composite and Shenzhen Component indices gained 3.22% and 6.7%, respectively.
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