DJIA Dow Jones Industrial Average Overview

We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Information presented by DailyFX Limited should be construed as market commentary, merely observing economical, political and market conditions. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples.

  1. But that doesn’t mean they’re expecting the Federal Reserve to cut interest rates in the near future.
  2. Already, the Fed has raised rates by a historic half point and then twice by three quarters of a point.
  3. “The decline was mainly driven by falling food prices. Hog production rose even at a time when demand was weaker than usual,” analysts at Commerzbank said in a client note.
  4. There’s a “very good chance” the S&P 500 is ready to rally after its close above 4,600 last week, one technical strategist said.
  5. However, Logan said she went along with the Federal Open Market Committee’s final decision not to hike as “it can make sense to skip a meeting and move more gradually.”

In early 1981, the index broke above 1,000 several times, but then retreated. After closing above 2,000 in January 1987,[42] the largest one-day percentage drop occurred on Black Monday, October 19, 1987, when the average fell 22.61%. However, it’s clear that the last two sessions have been particularly brutal for investors. That’s because Friday marked the release of the highly-anticipated CPI print, which came in much hotter than expected.

After a shaky start to the year, the S&P 500 has since cinched five straight record closes and has rallied 2.7% so far this month. “The big question now is how quickly Jerome Powell will normalize policy when there’s no immediate need,” he said. “The data matters less going forward and internal conversations at the Fed matter more.” Despite the mixed session, all three indexes finished higher on the week. The yield on the 10-year Treasury note ticked down on Monday to 4.110%.

Big Tech has carried much of the load, as artificial intelligence brings about product enhancements and additional revenue opportunities. The S&P 500 and Nasdaq are coming off their sixth straight weekly gain. This week, investors are looking ahead to key inflation data, which could affect market movements and rate policy from the Federal Reserve. Treasury auctions and the New York Fed’s survey of consumer expectations in the day ahead. Later in the week are the producer-price index (PPI) inflation reading on Wednesday, and U.S. retail sales on Thursday alongside rate decisions in the U.K. Friday ushers in a spate of global purchasing-managers’ indexes (PMIs) and a data dump out of China.

“We do not expect the BoJ to tighten policy this month because Japan’s economy‑wide wages growth remains subdued at just 1.5%/yr in October,” analysts at CBA wrote in a client note. Gold briefly traded over $2,100 last week, setting an all-time high, before retreating. The level has acted as a price ceiling for four years where investors tend to take profit, analyst Rob Ginsberg said in a note Saturday.

However, traders may now be expecting a hotter number that leads to the Fed resuming its hiking campaign this month after a pause at the June meeting. Traders are pricing in an approximately 92% chance of a hike at the central bank’s meeting later this month, according to CME Group’s FedWatch tool. The ADP data, which is often unreliable and considered more volatile than other employment data, comes ahead of Friday’s official June payrolls report. Economists are expecting 240,000 non-farm payrolls were added last month, a slowing from the 339,000 jobs added in May, according to Dow Jones. The pan-European Stoxx 600 index hovered around the flatline in early trade, with financial services adding 0.4% to lead gains while miners continued to suffer, shedding 1.5%. “While this trend may continue, we feel the longer-term setup is simply too strong to keep price contained beneath $2100 for much longer,” he wrote.

Pre-market data

Wall Street favorite CleanSpark and Iris Energy were down by 15% and 11%, respectively. “Broadcom reported strong F4Q23 results driven by AI which is expected to double from $4.0 billion in F23 to more than $8.0 billion in F24,” analyst Christopher Danely wrote. “We believe its AI business will offset the correction in the semi business.” Cigna Group, Humana — Cigna Group reportedly ditched its attempt to acquire competitor Humana after the two failed to agree on price.

Oil prices largely flat as investors remain wary

The Fed is expected to maintain the fed funds rate steady in the 5.25%-5.5% range. Chair Jerome Powell is also expected to reiterate his commitment to lowering inflation in his press conference on Wednesday. Fed funds futures pricing suggests a roughly 40% likelihood that the central bank will lower rates by a quarter of a point in March. In a larger sense, rate cuts signal to observers that the central bank is optimistic about its fight against high prices and confident that it can begin taking the brakes off of the economy, Cox added. The good news for the stock market is that yields remain below recent peaks. If they continue to remain below those peaks, markets will have confidence that the Federal Reserve is indeed finished lifting short-term rates in its battle to cool inflation.

That’s an extremely fast acceleration, in a very short amount of time. Hong Kong-listed shares of Chinese banks were among the leading decliners in the Hang Seng index after Goldman Sachs reportedly downgraded its ratings for the top mainland lenders. The new payout would give Bank of America a dividend yield of 3.3%, based on its closing turnkey forex review price of $29.08 per share on Wednesday. Meta Platforms stock climbed roughly 2% in premarket trading on Thursday after the launch of Threads, its rival platform to Twitter. Job openings fell more than expected in May, providing some hope that the labor market is loosening up, according to a Labor Department report Thursday.

Wall Street further reading

Construction added 97,000 while trade, transportation and utilities grew by 90,000. The yield on the 10-year Treasury was last trading at 4.031% after jumping more than 8 basis points. The 2-year Treasury yield was last up by more than 13 basis points to 5.082%. Continuing claims edged lower to 1.72 million, as both numbers pointed to a resilient labor market despite the Federal Reserve’s rate-hiking campaign. However, Logan said she went along with the Federal Open Market Committee’s final decision not to hike as “it can make sense to skip a meeting and move more gradually.”

At its meeting this week, the Fed decided to leave interest rates unchanged, extending a pause of a near-historic series of rate hikes deployed to cool fast-rising prices. Going further, the Fed said it expects to impose three quarter-point interest rate cuts next year. About 24.7% of stocks in the S&P 500 have posted their quarterly financials, according to FactSet data from Friday shortly after the opening bell. Of those that have already reported, nearly 72% have beat consensus forecasts of analysts, data from the market analytics platform shows. Friday’s PCE print came a day after gross domestic product data revealed higher-than-expected economic growth in the fourth quarter. That bolstered investors’ hopes that the economy has avoided a deep recession.

The exchange-traded fund that tracks the biggest U.S. banks and financial stocks has slightly outperformed the vanilla S&P 500 ETF so far this year. Tech stocks pushed the S&P 500 to all-time highs last week, although the S&P 500 Equal Weight, which doesn’t give outsized weight to tech stocks, has declined this year. BlackRock expects this trend to overturn as “market sticks to its rosy macro outlook,” they added. At least that’s what BlackRock Investment Institute strategists believe, according to a Monday note where they upgraded their view on the overall U.S. stock market to Overweight from Neutral. Now investors will prepare for Wednesday’s announcement that will detail the exact size of long-term and medium term bonds the Treasury plans to issue.

PLUG Stock Pops as Plug Power Reaches Major Milestone

Five of the so-called Magnificent Seven tech companies, including Microsoft and Apple, are set to report earnings this week. The seven companies overall account for 28% of the S&P 500 index, according to Dow Jones indices. The Financial Select Sector SPDR ETF fluctuated between losses and gains on Monday.

The three major indexes were all down more than 1% in Thursday morning trading, showing the strength of the session’s selloff. Small cap stocks unperformed on Thursday, with the Russell 2000 last down more than 2.2% and on pace for its worst day since April 25. Shares rose about 1.5% after Morgan Stanley upgraded Keurig Dr Pepper to overweight from equal weight, saying that the stock’s “pronounced stock underperformance” has created a buying opportunity for investors. JetBlue Airways tumbled more than 7% a day after the company announced it would end its partnership in the northeast U.S. with American Airlines to focus on Spirit Airlines.

The Dow Jones Transportation Average is higher by 2.3% so far this week and up 0.34% for the year thus far, exactly matching the S&P 500 this week but lagging the S&P’s 2.6% gain in 2024. “Investors holding excessive cash would not be as well insulated in this scenario – cash does not ‘rally, and the returns on rates would likely fall in this scenario,'” he wrote. Proactive investors will want to switch out of their cash-heavy positions now and get into bonds before the Federal Reserve begins cutting rates, said UBS’s Mark Haefele.

Leave a Comment

error: Content is protected !!