US Stocks Fall as Markets Reassess – Dow Down 0.7%
US stock indices declined yesterday as investors reassessed recent market movements and anticipated further data and central bank actions. The Dow Jones led the losses, dropping 0.70%, followed by the S&P 500, which slipped 0.19%. The Nasdaq, however, managed a modest gain of 0.04%. The US dollar had its best day since early June, with the DXY rising 0.68%, while US Treasury yields climbed higher, with the 2-year yield up 3.7 basis points to 3.557% and the 10-year yield adding 4.9 basis points to 3.784%. Oil prices plummeted as concerns over Libyan supply eased, with Brent falling 2.27% to $73.46 a barrel and WTI dropping 2.61% to $69.69 a barrel. Gold hit a new high of $2,670.43 before retreating later in the session, closing up 0.18% at $2,662 an ounce.
Central Bankers in Focus Today
Central bankers will be in sharp focus today as investors brace for a series of speeches from various officials. Several members of the Federal Open Market Committee (FOMC) are scheduled to speak. After last week’s unexpected 50-basis-point rate cut and the subsequent market movements, traders are closely monitoring any comments regarding the pace and scale of future cuts into the end of the year and beyond into 2025. With expectations having swiftly shifted from a 25-point cut to a 50-point cut over the past few weeks, most market participants are bracing for more volatility in rate expectations. With no fewer than eight members, including the Fed Chair, speaking later today, we could witness significant market movements during the New York session.
Busy Calendar Day Ahead for Traders
Traders are set for another busy day, with a significant focus on the US economy later. While there is little scheduled to move the markets during the early Asian session, activity is expected to pick up quickly once Europe opens. The key event in Europe will be the Swiss National Bank’s latest rate decision, with a 25-basis-point cut widely anticipated. Early in the New York session, a flurry of important US economic data will be released simultaneously, including the Final GDP, Weekly Unemployment Claims, and Durable Goods Orders figures. However, the most volatility may come after these data releases, as Jerome Powell and several other FOMC members take to the stage. Adding to the mix, speeches from ECB President Christine Lagarde and US Treasury Secretary Janet Yellen could contribute to what promises to be a very eventful afternoon for traders.
