US Stocks Rise, Treasury Yields Fall as Data Supports Fed Rate Cut Bets
– The Nasdaq 100 index advanced over 1% and the S&P 500 rose 0.89% following Thursday’s data drop.
– The US 10-year Treasury yield was trimmed to 3.83% after Gross domestic product rose at a 4.9% annualized pace in the third quarter, trailing economists’ projections.
– Market watchers blamed Wednesday’s stock market swoon on so-called zero-day options, but many argue that slowing inflation and rate-cut bets mean such speed bumps will be short-lived.
– Citigroup Inc. strategists advised buying into pullbacks, adding investors should “expect volatility ahead, but with an eventual Fed pivot as a north star.”
– Philadelphia Fed President Patrick Harker contributed to the rate-cut conviction Wednesday, saying it’s important that interest rates head lower, though he cautioned the central bank should not move too fast.
– Nike Inc.’s earnings, due after market close, and Friday’s UK GDP data, US consumer sentiment, and core personal-consumption expenditures price index are key events to watch.
In commodities, oil prices retreated after three days of gains, as surging US production tempered the threat of Houthi attacks on ships in one of the world’s most important waterways.
Key events this week:
– Nike earnings, Thursday
– Japan inflation, Friday
– UK GDP, Friday
– US personal income and spending, new home sales, durable goods, University of Michigan consumer sentiment index, Friday
Some of the main moves in markets:
Stocks
– The S&P 500 rose 0.9% as of 9:31 a.m. New York time
– The Nasdaq 100 rose 1.2%
– The Dow Jones Industrial Average rose 0.7%
– The Stoxx Europe 600 fell 0.2%
– The MSCI World index rose 0.5%
Currencies
– The Bloomberg Dollar Spot Index fell 0.5%
– The euro rose 0.5% to $1.0993
– The British pound rose 0.3% to $1.2683
– The Japanese yen rose 0.9% to 142.26 per dollar
Cryptocurrencies
– Bitcoin rose 0.9% to $43,836.51
– Ether rose 2.5% to $2,233.2
Bonds
– The yield on 10-year Treasuries declined one basis point to 3.83%
– Germany’s 10-year yield declined two basis points to 1.95%
– Britain’s 10-year yield was little changed at 3.53%
Commodities
– West Texas Intermediate crude fell 1.4% to $73.18 a barrel
– Spot gold rose 0.6% to $2,042.97 an ounce