Last Updated 4:22 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 0.8%, 0.71%, and 1.03%, respectively. Earlier today, 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 3.2% in the third quarter.
This is unchanged from the previous estimate, which can be attributed to this morning’s wholesale trade release from the U.S. Census Bureau that came in at -0.1%.
In addition, the minutes from the Fed’s September 17-18 meeting showed that some Federal Reserve officials wanted a smaller interest rate cut of 25 basis points instead of the 50-point cut that was made. They felt a smaller cut would let them see how the economy was responding and make future policy changes easier to predict.
In the end, the committee decided on a 50-basis point cut, with only one member, Michelle Bowman, voting against it. Most members felt more confident that inflation was moving closer to their 2% target.
The minutes showed that nearly all participants thought the risks to the economy were balanced, supporting their choice to make a bigger rate cut to help keep growth on track.
Furthermore, the Energy Information Administration (EIA) released its weekly Crude Oil Inventories report, which measures the weekly change in the number of barrels of commercial crude oil held by U.S. firms.
Compared to last week, inventories increased by 5.81 million barrels. For reference, economists were expecting an increase of 2 million barrels week-over-week. This means that demand was weaker than anticipated.
First Published: 5:12 AM EST
U.S. stock futures traded near the flatline on Wednesday morning following a strong rally in the previous session. Futures on the S&P 500 (SPX), the Dow Jones Industrial Average (DJIA), and the Nasdaq 100 (NDX) were down by about 0.28%, 0.2%, and 0.42%, respectively, at 3:57 a.m. EST, October 9.
Yesterday, Wall Street bounced back following a sharp decline in all three major indices on Monday. The S&P 500 and Nasdaq Composite gained 1% and 1.5%, respectively, while the Dow Jones rose 0.3%. Major technology stocks like Nvidia (NVDA) and Broadcom (AVGO) surged 4% and 3%, respectively, and contributed significantly to the overall market gains.
In key stock market news, PepsiCo (PEP) stock gained about 2%, even after the company reported weak sales for the fiscal third quarter and lowered its guidance. Moreover, Palantir Technologies (PLTR) jumped 6.6% after investment management firm, Ark Invest, noted the company’s potential to increase its share in the artificial intelligence market. Additionally, Palo Alto Networks (PANW) was up 5.1% following positive commentary from investment research firms, Goldman Sachs (GS) and BNP Paribas (BNPQY).
Today, investors are eagerly awaiting the release of the Federal Reserve’s meeting minutes for insights into the economic outlook and potential policy moves.
On the corporate earnings front, the calendar remains light today. Importantly, investors are looking forward to results from major banks like JPMorgan Chase (JPM) and Wells Fargo (WFC), which are set to report their numbers on Friday and provide insights into the financial sector’s health.
Meanwhile, the U.S. 10-year treasury yield was down slightly at the time of writing, floating near 4.016%. At the same time, WTI crude oil futures trended lower, hovering near $74.09 per barrel as of the last check.
Elsewhere, European markets opened flat today as investors reacted to the slowing momentum of China’s stimulus-fueled rally.
Asia-Pacific Markets Traded Mixed on Wednesday
Asia-Pacific indices were mixed today as the positive market momentum from Beijing’s stimulus measures began to fade.
At the time of writing, Hong Kong’s Hang Seng index was down 1.39%. Further, China’s Shanghai Composite and Shenzhen Component indices declined 6.62% and 8.15%, respectively. However, Japan’s Nikkei 225 and Topix indices finished higher by 0.87% and 0.3%, respectively.
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