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S&P 500, Nasdaq fall, yields rise after hawkish Fedspeak

S&P 500, Nasdaq fall, yields rise after hawkish Fedspeak

U.S. stocks finished mostly lower Wednesday to start March as key manufacturing data offered mixed results and two Federal Reserve officials suggested a more aggressive rate-hiking campaign in the coming months.

The S&P 500 (^GSPC) declined by 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, while the Dow Jones Industrial Average (^DJI) was flat. Contracts on the technology-heavy Nasdaq Composite (^IXIC) fell by 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The yield on the benchmark 10-year U.S. Treasury note moved upward and briefly touched 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Wednesday. Crude oil traded higher, with U.S. benchmark WTI up at $77.73 a barrel.

On the economic data side, U.S. manufacturing firms signaled a grim outlook for the sector, according to the latest PMI data from S&P Global. The seasonally adjusted S&P Global US Manufacturing Purchasing Managers’ Index was revised lower to 47.3 in February, up from 46.9 in January. The reading indicates “a solid deterioration in the health of the goods-producing sector, despite the pace of decline softening to the slowest for three months.”

Separately, economic activity in the manufacturing sector diminished in February for the fourth consecutive month following a 28-month period of growth, according to the Institute for Supply Management report on business. The data offered a mixed bag. Employment in manufacturing decreased to 49.10 in February from 50.60 in January. New orders rose to 47.0 compared to January’s figure of 42.5. Prices paid jumped to 51.3 from January’s reading of 44.5.

Stocks fell Tuesday, rounding out the last day of a volatile month of February on Wall Street. According to JP Morgan’s trading desk, February’s month-end rebalance drove some weakness in equities and strength in bonds Tuesday afternoon.

With February in the rearview, the S&P 500 remains up more than 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} this year, according to data from Bespoke Investment Group. Mega-caps have been a massive driver of the index moves. That said, 20 of the largest stocks in the S&P 500 have accounted for most of the index’s gains.

Now, as the calendar turns, March historically sees the S&P 500’s gains in the second half of the month, Bespoke Investment Group noted.

The path of the Federal Reserve’s rate hikes remains in focus for investors. Two Federal Reserve officials spoke on Wednesday leaned in the move that aggressive interest rate hikes are the path forward to ease inflation.

They followed Chicago Fed President Austan Goolsbee, who said on Tuesday it would be a “danger and a mistake for policy makers to rely too heavily on market reactions” and emphasized the importance to “supplement these traditional data with observations on the ground from the real economy.”

However, Goolsbee, who will be a voter at this year’s policy-setting Federal Open Market Committee meeting, didn’t comment on monetary policy.

Since last year, the Fed has sharply raised rates in an effort to cool inflation. But inflation remains sticky. Policymakers will be releasing new projections after the central bank’s March 21-22 meeting.

Austan Goolsbee, Professor of the University of Chicago, speaks during the Obama Foundation

Austan Goolsbee. REUTERS/Brendan McDermid

On the housing front, mortgage rates continue to move upward, pushing buyers to the sidelines as the spring housing market is underway. Both purchase and refinance applications slumped last week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume of purchase applications hit a 28-year low, down 44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from a year ago.

Here are some of the tickers trending on Yahoo Finance today:

  • Eli Lilly and Company (LLY): The drugmaker announced Wednesday morning it expects to cap out-of-pocket cost of its insulin at $35 a month. The plan comes as a promise to provide critical relief to some people with diabetes, who at times face higher medical costs.

  • Kohl’s (KSS): Shares of the retail giant declined nearly 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Wednesday after the company posted a surprise fourth-quarter loss and sales slumped as consumer habits shift away from discretionary spending.

  • Wendy’s (WEN): The fast-food chain announced in its quarterly earnings about its plans to target sales growth through 2025 as it streamlines costs.

  • Rivian (RIVN): The electric truck manufacturer’s guidance for fiscal 2023 deliveries came in 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} below estimates as the EV maker struggles to scale up its truck, van, and SUV production.

  • Nio (NIO): Another EV maker gave weak revenue guidance. The Chinese premium EV startup, reported a much worse-than-expected fourth-quarter loss as margins took a hit due to in part to “losses on purchase commitments.”

  • Novavax (NVAX): The vaccine maker warned of its ability to stay in business through next year. This comes as the company has struggled to develop and enter the COVID-19 vaccine market.

  • Alibaba (BABA): The stock climbed in the wake of the group’s quarterly earnings, and fueled by the 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} surge in the Hang Seng index overnight.

  • Dollar Tree (DLTR): The discount retailer stock rose nearly 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after the company posted weaker guidance for the current fiscal year.

  • Tesla (TSLA): The EV maker is set to kickoff its first Investor Day event on Wednesday from its gigafactory in Austin, Texas. CEO Elon Musk is expected to announce new Tesla products that aim to reduce reliance on fossil fuels and lead to a “fully sustainable energy future.”

  • HP (HPQ): The PC and printing giant’s stock wavered after the company posted mix results amid a soft demand environment for personal computers. Fiscal-quarter sales dropped 18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year. Printer sales sank 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from a year ago.

  • Reata Pharmaceuticals (RETA): The stock surged nearly 200{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Wednesday after the U.S. Food and Drug Administration on Tuesday approved the company’s treatment for Friedreich’s ataxia, a rare inherited disease that causes damage to the nervous system.

  • Lowe’s (LOW): The home-improvement company reported weaker fiscal sales in the fourth quarter and issued a conservative outlook ahead, with comparable sales expected to be flat to down 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} compared to the prior year. The stock fell nearly 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on Wednesday.

Other earnings on tap Wednesday after the bell include Salesforce (CRM), Snowflake (SNOW), and Okta (OKTA).

—

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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Stocks extend losses as investors weigh hawkish Powell remarks, more corporate earnings

Stocks extend losses as investors weigh hawkish Powell remarks, more corporate earnings

U.S. stocks were mostly lower Friday as investors assessed more corporate earnings and hawkish comments from Federal Reserve Chair Jerome Powell that hinted a half-point rate hike was likely next month.

The S&P 500 dipped 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, on pace to round out a third straight week of losses, while the Dow Jones Industrial Average fell 170 points. The tech-heavy Nasdaq Composite climbed slightly, up 0.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Meanwhile, Treasury yields continued their march forward, with the 10-year U.S. benchmark yielding 2.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, the highest level since December 2018.

Speaking at a panel hosted by the International Monetary Fund Thursday, Powell said a 50-basis point rate increase was “on the table” for May when the U.S. central bank holds its next policy-setting meeting. The Fed chair also reiterated that policymakers were committed to “front-end loading” inflation-fighting efforts.

“We really are committed to using our tools to get 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} inflation back,” Powell said in remarks before European Central Bank President Christine Lagarde and other officials, referring to the Fed’s target for annual price increases.

“We’re definitely in the cards for a 50 basis point rate hike in the May meeting,” Capital2Market President Keith Bliss said on Yahoo Finance Live on Thursday (video above). “The market is pretty good at dictating, if not indicating, where this is going to go.”

With the headline Consumer Price Index at its highest level in four decades, the U.S. Federal Reserve has recently signaled aggressive monetary tightening is underway to rein in rising price levels despite warnings from experts that moving too quickly could result in an economic contraction.

“The big question is whether the earnings can really sustain this kind of a macro backdrop of slower growth and Fed policy,” Deutsche Bank Wealth Management Chief Investment Officer Deepak Puri said on Yahoo Finance Live earlier this week. “It seems certain companies can — historically that’s been the case. What’s different this time is really the trifecta, which is higher costs of capital, quantitative tightening, plus a lack of … a big fiscal stimulus.”

Despite worries from Wall Street over the next policy moves and the risks posed to traders, a readout of the Federal Reserve’s recently published Beige Book suggests Main Street sentiment remains positive overall.

Strategists at LPL Research said the Beige Book Barometer may provide a more accurate picture of the economic outlook than current consumer sentiment, which has been weak in the face of soaring inflation. Despite an economic slowdown in the first quarter, data out of Washington has come in better than consensus expectations in recent weeks.

“Looking at the Fed’s most recent Beige Book, local U.S. businesses remain resilient despite elevated uncertainty,” LPL Financial Asset Allocation Strategist Barry Gilbert said. “Inflation, COVID, and the conflict in Ukraine will keep uncertainty elevated in the near term, but if we can navigate these challenges we believe there are solid prospects of a pick-up in growth in the second half of the year.”

Elsewhere in markets, shares of American Express (AXP) fell 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} despite a beat on its quarterly earnings in results out Friday morning. Shares of Verizon (VZ), which also reported before the opening bell, tumbled 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after the telecommunications giant said it lost 36,000 monthly phone subscribers during the first quarter.

Investors continued to watch Snap Inc. (SNAP) after the company projected a strong outlook for user growth on Thursday despite warning supply-chain disruptions and inflation could continue to hurt advertising demand. Shares of Snap were up about 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trading.

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10:03 a.m. ET: U.S. business activity decelerates in April

Business activity across the U.S. eased in April, with inflationary pressures putting a dent in service sector output as rising prices weighed on spending.

S&P Global’s Flash Composite Purchasing Managers’ Index, which serves as a measure of overall economic health, fell to a reading of 55.1 this month from 57.7 in March. Economists surveyed by Bloomberg expected a reading of 57.9. Any reading above 50 indicates growth in the private sector.

“Many businesses continue to report a tailwind of pent up demand from the pandemic, but companies are also facing mounting challenges from rising inflation and the cost of living squeeze, as well as persistent supply chain delays and labor constraints,” S&P Global chief business economist Chris Williamson said in a statement.

“These headwinds, plus increased concerns over the economic outlook and tightening monetary policy, meant business confidence about the outlook slipped sharply lower in April. However, with the overall pace of economic growth and hiring remaining relatively solid, for now the focus from a policy perspective is likely to remain firmly on the need to rein in the record high inflationary pressures signaled by the survey.”

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9:30 a.m. ET: Stocks extend losses after Powell rate comments spook investors

Here’s where the main benchmarks opened at the start of Friday’s trading session:

  • S&P 500 (^GSPC): -15.81 (-0.36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,377.85

  • Dow (^DJI): -229.65 (-0.66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,563.11

  • Nasdaq (^IXIC): +0.85 (+0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,175.50

  • Crude (CL=F): -$2.01 (-1.94{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $101.78 a barrel

  • Gold (GC=F): -$13.10 (-0.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,935.10 per ounce

  • 10-year Treasury (^TNX): +1.1 bps to yield 2.9280{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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7:00 a.m. ET: Futures edge lower as S&P 500 sets out for another losing week

Here were the main moves in futures trading ahead of the opening bell Friday:

  • S&P 500 futures (ES=F): -12.75 (-0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,377.75

  • Dow futures (YM=F): -95.00 (-0.27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,614.00

  • Nasdaq futures (NQ=F): -39.75 (-0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,688.50

  • Crude (CL=F): -$1.48 (-1.43{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $102.31 a barrel

  • Gold (GC=F): -$12.10 (-0.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,936.10 per ounce

  • 10-year Treasury (^TNX): 0.00 bps (0.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to yield 2.9170{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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6:53 p.m. ET Thursday: Stock futures muted after hawkish Powell remarks sent indexes tumbling

Here’s where stocks were trading ahead of the overnight session on Thursday:

  • S&P 500 futures (ES=F): -1.50 (-0.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,389

  • Dow futures (YM=F): -3.00 (-0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,706

  • Nasdaq futures (NQ=F): -4.75 (-0.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,723.50

  • Crude (CL=F): -$0.03 (-0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $103.76 a barrel

  • Gold (GC=F): +$4.60 (+0.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,952.80 per ounce

  • 10-year Treasury (^TNX): +0.077 bps (+2.71{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to yield 2.9170{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 14, 2022. REUTERS/Brendan McDermid

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 14, 2022. REUTERS/Brendan McDermid

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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Stocks dip as investors digest hawkish Fed remarks, eye more sanctions

Stocks dip as investors digest hawkish Fed remarks, eye more sanctions

U.S. stocks fell Wednesday as investors eyed more Western sanctions against Russia and digested hawkish remarks from key monetary policymakers. These suggested that more members of the Federal Reserve were open to moving aggressively to raise interest rates and bring down demand and persistently elevated levels of inflation.

The S&P 500 dropped, adding to losses after the blue-chip index ended Tuesday’s session lower by 1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Dow Jones Industrial Average and Nasdaq also extended declines. In the bond market, the benchmark 10-year Treasury yield rose to top 2.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, marking its highest level since May 2019.

Developments on Russia’s war in Ukraine and the Western response remained in focus Wednesday as the U.S., European Union and Group of Seven readied another round of sanctions on the Kremlin. The U.S. is expected to add penalties to more Russian government officials and family members, and Russian-owned enterprises and financial institutions.

Meanwhile, hawkish commentary from Federal Reserve officials also knocked U.S. equities from their latest march higher and send Treasury yields spiking.

Namely, Federal Reserve Governor Lael Brainard said Tuesday that the Federal Open Market Committee (FOMC) was “prepared to take stronger action” should already elevated indicators of inflation rates and expectations warrant such moves.

Speaking in a webcast, Brainard suggested this could include aggressive interest rate hikes and a much quicker drawdown of the Federal Reserve’s balance sheet — which has thus far ballooned to nearly $9 trillion — than in previous periods.

“Given that the recovery has been considerably stronger and faster than in the previous cycle, I expect the balance sheet to shrink considerably more rapidly than in the previous recovery, with significantly larger caps and a much shorter period to phase in the maximum caps compared with 2017–19,” Brainard said. She noted the process of reducing the Fed’s balance sheet holdings, or beginning quantitative tightening, could begin as soon as the Fed’s next meeting in May.

Other Fed members also suggested they were on board with more policy tightening in the near-term. San Francisco Fed President Mary Daly told the Financial Times on Tuesday that the case for a 50 basis-point interest rate hike — or a hike double the size of the central bank’s typical per-meeting increase — “has grown.”

“The fact is, the Fed has made it very clear … it’s paramount that they go after inflation and do whatever it takes to staunch the rise in inflation,” Quincy Krosby, chief equity strategist for LPL Financial, told Yahoo Finance Live. “They’re going to do it, and I think the market is getting the sense that this is going to be a choppy path.”

“The Fed may go until it breaks something … but it’s clear that this is their mission, and they are going to go ahead with it, full steam – more than 2017, more than 2018,” she added, referring to the last time the Federal Reserve underwent quantitative tightening several years ago.

With inflation rates in the U.S. still holding at around 40-year highs and forcing the Fed’s hand in aggressively tightening financial conditions, some on Wall Street have downgraded their expectations for U.S. and global growth. Deutsche Bank economists said Tuesday they expected the U.S. to tip into a recession at the end of next year as the Fed rapidly hikes rates to address high prices.

“We now expect the U.S. economy to be in outright recession by late next year, and the [Euro area] in a growth recession in 2024 with unemployment edging up,” Deutsche Bank economists David Folkerts-Landau and Peter Hooper said. “Our baseline view is that these developments will spill over to damp growth in much of the rest of the world and at the same time help to bring inflation back toward mandated levels, diminishing the risk of greater disruptions further down the road.”

Still, the economists noted their call for a recession next year “is currently way out of consensus” — and indeed, many on Wall Street still see a slowdown, but not necessarily a period of negative growth in the near-term domestically.

“We’re not thinking that the Fed is going to push the economy into recession,” Veronica Willis, Wells Fargo Investment Institute investment strategy analyst, told Yahoo Finance Live on Tuesday. “I think most are not expecting that. But we are expecting kind of a slowdown in economic growth from what we had expected previously, but still around average economic growth here in the U.S.”

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9:45 a.m. ET: Bitcoin prices dip below $45,000, pulling down crypto-linked stocks

Bitcoin (BTC-USD) prices fell below $45,000 for the first time since last week on Wednesday, bringing shares of cryptocurrency-linked stocks including Coinbase (COIN), Bakkt Holdings (BKKT) and Riot Blockchain (RIOT) lower as well.

Bitcoin prices have been on a roller-coaster ride this year, tracking the volatility across other risk assets as geopolitical and monetary policy concerns increased. Prices began the year around $48,000 for the largest cryptocurrency by market cap, but dipped as low as below $35,000 so far this year.

Other major cryptocurrencies including Ethereum (ETH-USD), XRP (XRP-USD) and Solana (SOL-USD) also dipped Wednesday morning.

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9:39 a.m. ET: JetBlue shares drop after airline makes competing bid for Spirit

JetBlue (JBLU) shares dropped Wednesday morning after the carrier made an offer to purchase Spirit Airlines (SAVE) — less than two months after the budget airline agreed to merge with Frontier Group (ULCC).

JetBlue stepped in with $3.6 billion offer to buy Spirit Airlines, with the all-cash deal coming out to $33 per outstanding Spirit share. The combined company would have a fleet of 450 aircraft with another 312 Airbus aircraft to be delivered over the next six years, and would bring more flights to hubs including New York and Florida, where both airlines already operate.

However, in February, Frontier Group made its own bid to buy Spirit for $2.9 billion, in a deal the companies said at the time would save customers about $1 billion per year. JetBlue said in its press release this morning that its offer was a “superior proposal” and that it would be “more effective than Ultra-Low-Cost Carriers in Introducing Competition and Bringing Down Legacy Carrier Fares.”

Wall Street, however, has expressed skepticism over a JetBlue-Spirit tie-up.

“The merits of a potential JetBlue-Spirit merger are not as abundantly clear to us as are those that could stem from other combinations among remaining, non-Big 3 airlines,” JPMorgan airline analyst Jamie Baker wrote in a note this morning.

—

9:31 a.m. ET: Stocks open lower, Treasury yields surge

Here’s where markets were trading Wednesday morning:

  • S&P 500 (^GSPC): -36.19 (-0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,488.93

  • Dow (^DJI): -229.02 (-0.66{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,412.16

  • Nasdaq (^IXIC): -178.10 (-1.27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,023.64

  • Crude (CL=F): +$0.51 (+0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $102.57 a barrel

  • Gold (GC=F): +$2.20 (+0.11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,929.70 per ounce

  • 10-year Treasury (^TNX): +7.7 bps to yield 2.631{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

8:00 a.m. ET: Mortgage applications fall for fourth straight week as rates rise further

U.S. mortgage applications dropped for a fourth consecutive week into the beginning of April, with fast-rising mortgage rates deterring homeowners from refinancing and new buyers from coming into the market.

The Mortgage Bankers Associations’ weekly index showed mortgage applications fell 6.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} week-on-week during the period ending April 1. This came following a 6.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} drop during the prior week.

Refinances fell 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the previous week and by 62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the same week last year, bringing overall applications for refinances down to the lowest level since spring 2019. Purchases fell 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} week-over-week on a seasonally unadjusted basis, and declined 9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the comparable period last year.

“Mortgage application volume continues to decline due to rapidly rising mortgage rates, as financial markets expect significantly tighter monetary policy in the coming months. The 30-year fixed mortgage rate increased for the fourth consecutive week to 4.90{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and is now more than 1.5 percentage points higher than a year ago,” Joel Kan, MBA associate vice president of economic and industry forecasting, said in a press statement Wednesday.”

“The hot job market and rapid wage growth continue to support housing demand, despite the surge in rates and swift home-price appreciation,” Kan added. “However, insufficient for-sale inventory is restraining purchase activity.”

—

7:16 a.m. ET: Stock futures fall

Here’s where markets were trading Wednesday morning:

  • S&P 500 futures (ES=F): -38 points (-0.84{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,482.25

  • Dow futures (YM=F): -214 points (-0.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,336.00

  • Nasdaq futures (NQ=F): -203 points (-1.37{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,625.00

  • Crude (CL=F): +$1.42 (+1.39{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $103.38 a barrel

  • Gold (GC=F): +$4.70 (-0.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,922.80 per ounce

  • 10-year Treasury (^TNX): +8.3 bps to yield 2.637{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:10 p.m. ET Tuesday: Stock futures edge higher

Here’s where markets were trading Tuesday evening as the overnight session began:

  • S&P 500 futures (ES=F): +5.25 points (+0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,525.50

  • Dow futures (YM=F): +34 points (+0.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,584.00

  • Nasdaq futures (NQ=F): +25.75 points (+0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,853.75

NEW YORK, NEW YORK - MARCH 30: Traders work on the floor of the New York Stock Exchange on March 30, 2022 in New York City. U.S. stocks opened low after rallying to start the week. (Photo by Michael M. Santiago/Getty Images)

NEW YORK, NEW YORK – MARCH 30: Traders work on the floor of the New York Stock Exchange on March 30, 2022 in New York City. U.S. stocks opened low after rallying to start the week. (Photo by Michael M. Santiago/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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Stocks end lower after hawkish Fed remarks

Stocks end lower after hawkish Fed remarks

Stocks fell on Monday to give back some gains after last week’s advances, while energy prices resumed a march higher.

The S&P 500, Dow and Nasdaq traded lower Monday afternoon in a choppy session. The major indexes extended losses after Federal Reserve Chair Jerome Powell said the Fed would “adjust policy as needed” to bring down inflation, including by speeding up interest rate hikes if necessary. Treasury yields added to earlier gains across the curve, and the benchmark 10-year yield rose to near 2.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Energy and commodity prices spiked amid the latest developments in Russia’s war in Ukraine. As of Monday, Ukraine refused to surrender its heavily attacked port city of Mariupol to Russian forces, while the civilian death toll across Ukraine climbed.

U.S. crude oil prices (CL=F) jumped more than 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at session highs to top $112 per barrel, and Brent crude, the international standard, (BZ=F), rose to more than $116 per barrel. Aluminum, palladium and wheat prices each also gained Monday.

At the start of a relatively quiet week for corporate earnings results and new economic data, traders continued to mull the market implications of the Federal Reserve’s latest monetary policy decision against persistently elevated inflation and the ongoing war in Ukraine, which has exacerbated existing price pressures.

The Federal Reserve’s move last week to raise interest rates by a quarter-point and signal another six rate hikes later this year was met with an at least momentary rally in U.S. equities, with traders relieved to receive some clarity on the central bank’s monetary path forward after weeks of speculation. And the Fed also signaled the likely start of discussions and then implementation of quantitative tightening, or rolling assets off its nearly $9 trillion balance sheet.

“The key message to come from meetings of the Federal Reserve and Bank of England last week, and the European Central Bank the week before, was that the war in Ukraine has not deterred central bankers from their plans to tighten policy,” Neil Shearing, group chief economist for Capital Economics, wrote in a note. “In fact, both the Fed and the ECB delivered hawkish surprises.”

“The war has added to the squeeze on real incomes in advanced economies and caused a substantial tightening of financial conditions in Europe. But, for now, central banks remain focused on bringing down inflation and containing any second-round effects on wages and prices. This is, on balance, the correct judgement,” he added. “While the economic outlook is unusually uncertain, the high starting point for inflation – and the likelihood that it will rise further – justifies a tightening of policy.”

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4:04 p.m. ET: Stocks end lower after hawkish Fed remarks: Dow drops 202 points, or 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Here were the main moves in markets as of 4:04 p.m. ET:

  • S&P 500 (^GSPC): -1.93 (-0.04{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,461.19

  • Dow (^DJI): -201.94 (-0.58{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,552.99

  • Nasdaq (^IXIC): -55.38 (-0.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,838.46

  • Crude (CL=F): +$7.77 (+7.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $112.47 a barrel

  • Gold (GC=F): +$7.30 (+0.38{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,936.60 per ounce

  • 10-year Treasury (^TNX): +16.7 bps to yield 2.3150{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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1:49 p.m. ET: Stocks drop after Powell remarks, Nasdaq sheds 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Here’s where markets were trading Monday afternoon:

  • S&P 500 (^GSPC): -24.29 (-0.54{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,438.83

  • Dow (^DJI): -334.60 (-0.96{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,420.33

  • Nasdaq (^IXIC): -158.86 (-1.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,733.95

  • Crude (CL=F): +$5.18 (+4.95{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $109.88 a barrel

  • Gold (GC=F): -$0.40 (-0.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,928.90 per ounce

  • 10-year Treasury (^TNX): +14.7 bps to yield 2.295{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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12:33 p.m. ET: Powell says Fed will ‘adjust policy as needed’ to bring down inflation, preserve strong labor market

Federal Reserve Chair Jerome Powell said Monday that the central bank would continue to monitor incoming data and developments and “adjust monetary policy as needed” to bring down inflation while also keeping economic growth intact.

“As the outlook evolves, we will adjust policy as needed in order to ensure a return to price stability with a strong job market,” Powell said in a speech.

He also noted that “ongoing rate increases will be appropriate” to help bring inflation back toward the Fed’s target of 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. This was consistent with what the Fed telegraphed last week following its March meeting, wherein the median members’ forecast saw rates rising another six times this year.

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9:30 a.m. ET: Stocks open slightly lower

Here’s where stocks were trading just after market open Monday morning:

  • S&P 500 (^GSPC): +7.29 (+0.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,470.41

  • Dow (^DJI): -10.66 (-0.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,744.27

  • Nasdaq (^IXIC): -16.46 (-0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 13,877.47

  • Crude (CL=F): +$4.05 (+3.87{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $108.75 a barrel

  • Gold (GC=F): -$6.60 (-0.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,922.70 per ounce

  • 10-year Treasury (^TNX): +8.9 bps to yield 2.237{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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8:51 a.m. ET: Fed’s Bostic sees six total rate hikes this year given ‘elevated levels of uncertainty’

Atlanta Federal Reserve President Raphael Bostic said Monday he saw the central bank raising interest rates a total of six times this year, representing a more dovish outlook than many of his peers offered in the Federal Open Market Committee’s latest Summary of Economic Projections (SEP).

Bostic, who is not a voting member this year on the FOMC, said in a keynote address Monday morning at the National Association for Business Economics Annual Policy Conference, that he “penciled in six rate hikes for 2022 and two more for 2023” in the Fed’s most recent SEP released last Wednesday.

“I recognize that I am toward the bottom of the distribution relative to my colleagues, but the elevated levels of uncertainty are front forward in my mind and have tempered my confidence that an extremely aggressive rate path is appropriate today,” Bostic said. “Events are shifting rapidly, and we could see marked changes along key dimensions, such as aggregate demand, that could warrant quickly adjusting the trajectory of policy.”

“Here the risks go both ways. Should demand falter in the face of economic uncertainty or removal of monetary policy accommodation, then the appropriate path may be shallower than I currently project,” he added. “But there are other developments, such as shifts in supply strategies, that could mean higher costs and thus motivate a steeper policy path than I expect.”

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8:37 a.m. ET: Chicago Fed National Activity Index shows modest deceleration in economic growth in Feb.

The Chicago Federal Reserve’s monthly National Activity Index fell slightly more than expected in February, reflecting a moderate deceleration in U.S. economic growth.

The headline index ticked down to 0.51 for February, the Chicago Fed said Monday morning. This dropped for 0.59 in January, which was in turn revised slightly lower from the 0.69 previously reported. Readings of 0 are consistent with U.S. economic growth rates at the average historical trend, while readings above zero indicate growth.

Of the 85 monthly economic indicators comprising the index, 61 made positive contributions, while 24 detracted from the index during February.

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8:20 a.m. ET: Boeing shares drop after 737 passenger jet crashes in China

Shares of Dow component Boeing (BA) fell Monday morning in pre-market trading after a passenger plane with more than 130 people on board crashed in China’s Guangxi province.

The Civil Aviation Administration of China confirmed the crash of the Boeing 737 jet, which was operated by China Eastern Airlines. The number of casualties following the crash remains unknown, and Chinese officials have dispatched a rescue team to the crash site.

Shares of Boeing dropped more than 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trading. The stock has fallen by 4.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the year-to-date through Friday’s close.

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7:40 a.m. ET Monday: Stock futures mixed, Dow and Nasdaq head for slightly lower opens

Here’s where markets were trading heading into the opening bell Monday morning:

  • S&P 500 futures (ES=F): +2.25 points (+0.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,455.75

  • Dow futures (YM=F): -58 points (-0.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,575.00

  • Nasdaq futures (NQ=F): -1 point (-0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,412.50

  • Crude (CL=F): +$4.55 (+4.35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $109.25 a barrel

  • Gold (GC=F): -$2.80 (-0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,926.50 per ounce

  • 10-year Treasury (^TNX): +4.3 bps to yield 2.191{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

NEW YORK, NEW YORK - MARCH 16: Traders work on the floor of the New York Stock Exchange (NYSE) on March 16, 2022 in New York City. The Dow started off the day in positive territory, extending yesterday's rally. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MARCH 16: Traders work on the floor of the New York Stock Exchange (NYSE) on March 16, 2022 in New York City. The Dow started off the day in positive territory, extending yesterday’s rally. (Photo by Spencer Platt/Getty Images)

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Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn