Stock indices finished today’s trading session mixed as geopolitical tensions and stubborn inflation caused uncertainty. The Nasdaq 100 (NDX) and the S&P 500 (SPX) fell 2.05% and 0.88%, respectively, while the Dow Jones Industrial Average (DJIA) gained 0.56%.
Chicago Fed President Austan Goolsbee’s hawkish stance on inflation has added to the uncertainty in the market, with him being the fourth Fed member this week to express caution. This comes as U.S. futures were trading lower on Friday morning due to escalated Middle East tensions and concerns about the interest rate trajectory.
All three major indices, the Nasdaq Composite, S&P 500, and Dow Jones, are on track to close lower this week, with expectations of the Federal Reserve delaying interest rate cuts until September or potentially refraining from any cuts in 2024.
Analysts are pointing to strong U.S. data as a reason for the central bank to hold off on rate cuts, with concerns about consumer debt, high interest rates, and persistent inflation pressures impacting economic activity in 2024.
In today’s earnings calendar, major companies like Procter & Gamble, American Express, Schlumberger, and Fifth Third Bancorp are scheduled to report results.
Meanwhile, the U.S. 10-year treasury yield was down, while WTI crude oil futures trended higher due to concerns about potential oil supply disruptions following Israel’s retaliatory attack on Iran.
In Asia-Pacific markets, indices closed lower today amid growing tensions between Iran and Israel, with Hong Kong’s Hang Seng index, China’s Shanghai Composite and Shenzhen Component indices, and Japan’s Nikkei and Topix indices all declining.
Overall, uncertainty in the market persists as investors weigh geopolitical tensions and inflation concerns, making for a volatile trading environment. Stay tuned for more updates on the latest economic insights.
