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Market Wrap: Stocks, Bonds, Commodities |
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On Wednesday, U.S. stocks declined, with the S&P 500 dropping 58 points (-0.75%) to 7,706, the Nasdaq 100 down 262 points (-0.85%) to 30,470, and the Dow Jones down 352 points (-0.68%) to 51,511.
Market sentiment was dampened by surging yields and growing rate-hike expectations. The U.S. 10-year Treasury yield touched 5.135%, the highest level since 2007. Meanwhile, traders see odds of another 25-basis-point hike in October at around 70%, according to the CME FedWatch Tool.
Alphabet (GOOGL) fell 3.80%, Amazon (AMZN) dropped 2.24%, and Nvidia (NVDA) was down 1.47%.
Semiconductor stocks retreated, with Broadcom (AVGO) losing 2.62%, Micron Technology (MU) down 2.22%, Advanced Micro Devices (AMD) down 1.47%, and Taiwan Semiconductor Manufacturing (TSM) down 1.20%.
Paychex (PAYX), a provider of payroll and human resources services, tumbled 8.77% after first-quarter results showed only modest growth in its core Management Solutions segment.
On the other hand, software stocks outperformed the market, with Palo Alto Networks (PANW) rising 5.00%, CrowdStrike (CRWD) up 4.97%, Palantir Technologies (PLTR) up 3.68%, and ServiceNow (NOW) up 2.76%.
European stocks also closed lower, with the DAX 40 declining 0.66%, the CAC 40 down 0.39%, and the FTSE 100 down 0.03%.
U.S. WTI crude futures rebounded 1.64 dollars (+1.81%) to 92.16 dollars a barrel, snapping a five-session decline. Iranian President Masoud Pezeshkian told the United Nations that Tehran would never bow to U.S. pressure.
Spot gold retreated 69 dollars (-1.60%) to 4,286 dollars an ounce.
Investors also looked ahead to a summit between U.S. President Donald Trump and Chinese President Xi Jinping.
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The U.S. dollar climbed as hotter business-activity data and rising Treasury yields reinforced expectations for further Federal Reserve rate hikes.
Regarding U.S. economic data, the S&P Global composite purchasing managers index rose to 58.4 in September (vs 55.2 expected, 56.0 in August), the highest level since July 2021.
EUR/USD declined 66 pips to 1.1382, while USD/JPY jumped 90 pips to 158.31.
GBP/USD fell 105 pips to 1.3238, and AUD/USD declined 75 pips to 0.7040.
USD/CHF rose 47 pips to 0.8253, and USD/CAD advanced 39 pips to 1.4104.
Bitcoin slipped 2% to 84,400 dollars.
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In Asian trading hours, AUD/USD fell to 0.7035. Australia's employment increased by 39,500 in August (vs +20,000 estimated), while the jobless rate climbed to 4.6% (vs 4.5% expected).
Meanwhile, EUR/USD and GBP/USD both remained subdued, at 1.1384 and 1.3243 respectively.
USD/JPY retreated to 157.87.
Gold edged up to 4,292 dollars.
Bitcoin remained under pressure at 84,388 dollars.
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Germany's Ifo Business Climate Index is estimated to edge up to 89.0 in September.
The Swiss National Bank is expected to keep its benchmark interest rate unchanged at 0%.
In the U.S., weekly initial jobless claims are estimated at 201,000, while new home sales are expected to increase by 3.2% month-on-month in August.
Canada's retail sales are estimated to grow 0.4% month-on-month in August.
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