Index Investing News
Friday, May 30, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Stocks Sink as Hot Economic Data Dash Dovish Hopes: Markets Wrap

by Index Investing News
October 5, 2022
in Financial
Reading Time: 4 mins read
A A
0
Home Financial
Share on FacebookShare on Twitter


(Bloomberg) — Stocks slumped, in a reversal of the dramatic rally of the past couple of days that was driven by oversold conditions and a debate on whether the global monetary tightening cycle would be close to a peak.

Most Read from Bloomberg

Traders got some fresh insights on the economy, with data showing better-than-estimated growth at US service providers and companies hiring at a solid clip, which could complicate the Federal Reserve’s task to tame decades-high inflation. The figures provided one more reason for the slide in equities, with the S&P 500 halting a two-day surge. Bond yields rose with the dollar.

Also not helping sentiment toward risk assets were comments from Fed Bank of San Francisco President Mary Daly, who said market anticipation of rate cuts next year is misplaced, as the central bank aims to keep policy tight to secure 2% inflation. “I don’t see that happening at all,” Daly said in an interview with Michael McKee on Bloomberg Television when asked about the trajectory in futures pricing that suggests rate hikes followed by reductions.

To Win Thin at Brown Brothers Harriman, the notion of any Fed pivot is just “wishful thinking” as Fed officials remain hawkish. He says another 75-basis-point hike in November is a “done deal.”

Volcker Lesson to Generation QE: Stock Recoveries Can Take Years

“Over the last few sessions, the market was too quick price in the ‘peak rate’ story in markets,” said Bipan Rai, head of North America currency strategy at CIBC. “Price pressures are set to remain sticky for some time and while the Fed might be closer to smaller incremental hikes than not, playing this via a ‘peak rate’ view is fairly dicey.”

All eyes will now be on the government’s payrolls report Friday that’s forecast to show another month of robust job creation and the unemployment rate holding near a 50-year low. To Charlie McElligot at Nomura Securities, Wednesday’s jobs numbers helped mitigate some of that “dovish vibe” that followed data showing a slide in US job openings, which lent credibility to the idea that the labor market could be moderating.

As the Fed intensifies its inflation fight, a report from the Mortgage Bankers Association illustrates the abrupt swing in borrowing costs. US mortgage rates jumped to a 16-year high of 6.75%, marking the seventh-straight weekly increase and spurring the worst slump in home loan applications since the depths of the pandemic.

If history is any guide, “markets will need to experience more stress” before a pivot in monetary policy and an equity bottom, Wells Fargo & Co. strategists led by Christopher Harvey wrote. The Cboe Volatility Index is still trading below 40 — a threshold that in the past signaled a shift to monetary easing.

US stocks just posted a rare streak of quarterly declines and are in a bear market, but Citigroup Inc. quantitative strategists say they’re only just starting to reflect the risks of a recession. A team led by Hong Li said equities could come under further pressure as they continue to be “heavily driven” by heightened bond market volatility as well as concerns around persistent inflation and hawkish Fed.

There’s “more downside risk for the market and the earnings season,” they wrote.

In fact, investors’ uncertainty toward the health of US companies is rising — and their leaders haven’t done much to help. The lack of an accurate road map for the crucial earnings season is setting the stage for a slew of potential surprises when the reporting season kicks off in coming weeks.

Aside from those few providing cold, hard numbers, executives at the 1,000 largest US firms have spent the past three months voicing a similar message in their public remarks: They’re unsure about what’s ahead. They’ve mentioned “uncertainty” or its synonyms when describing the outlook 484 times during that time, the highest tally since the quarter ending March 2021, data compiled by Bloomberg show.

KKR’s Debt Deal Shows How Ugly Things Are Getting for Lenders

Key events this week:

  • Eurozone retail sales, Thursday

  • US initial jobless claims, Thursday

  • Fed’s Charles Evans, Lisa Cook, Loretta Mester speak at events, Thursday

  • US unemployment, wholesale inventories, nonfarm payrolls, Friday

  • BOE Deputy Governor Dave Ramsden speaks at event, Friday

  • Fed’s John Williams speaks at event, Friday

Will earnings disappoint and push equities to new lows? This week’s MLIV Pulse survey asks about corporate earnings. It’s brief and we don’t collect your name or any contact information. Please click here to share your views.

Some of the main moves in markets:

Stocks

  • The S&P 500 fell 1.5% as of 10:47 a.m. New York time

  • The Nasdaq 100 fell 2%

  • The Dow Jones Industrial Average fell 1.2%

  • The Stoxx Europe 600 fell 1.2%

  • The MSCI World index fell 1.2%

Currencies

  • The Bloomberg Dollar Spot Index rose 0.9%

  • The euro fell 1.3% to $0.9858

  • The British pound fell 1.8% to $1.1270

  • The Japanese yen fell 0.4% to 144.70 per dollar

Cryptocurrencies

  • Bitcoin fell 2.2% to $19,900.57

  • Ether fell 2.6% to $1,326.74

Bonds

  • The yield on 10-year Treasuries advanced 13 basis points to 3.76%

  • Germany’s 10-year yield advanced 15 basis points to 2.02%

  • Britain’s 10-year yield advanced 16 basis points to 4.04%

Commodities

  • West Texas Intermediate crude rose 1% to $87.39 a barrel

  • Gold futures fell 0.8% to $1,717 an ounce

Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.



Source link

Tags: DashDataDovisheconomichopesHotMarketssinkStocksWrap
ShareTweetShareShare
Previous Post

What Is an IPO Lockup Period?

Next Post

The Witch of October Is Here: Remember Short-Term Pain = Long-Term Progress

Related Posts

’50 tonnes per day’: Fishermen report an enormous soar in Octopus inhabitants alongside English Channel indicating a stress in deep ocean

’50 tonnes per day’: Fishermen report an enormous soar in Octopus inhabitants alongside English Channel indicating a stress in deep ocean

by Index Investing News
May 30, 2025
0

Unusually heat sea temperatures within the North Atlantic are disrupting marine ecosystems, resulting in a pointy rise in octopus catches...

NetEase shares close to report excessive as China’s Gen Z embraces video games

NetEase shares close to report excessive as China’s Gen Z embraces video games

by Index Investing News
May 30, 2025
0

NetEase Inc. shares are closing in on their first new all-time excessive in over 4 years, as a wave of...

Adani Ports’ Rs 5,000 Crore Bond Sale Attracts LIC’s Curiosity, Say Reviews

Adani Ports’ Rs 5,000 Crore Bond Sale Attracts LIC’s Curiosity, Say Reviews

by Index Investing News
May 29, 2025
0

Adani Ports & Particular Financial Zone Ltd.'s document rupee bond supply value Rs 5,000 crore noticed curiosity from Life Insurance...

India set to turn out to be third largest economic system by 2027: Piyush Goyal

India set to turn out to be third largest economic system by 2027: Piyush Goyal

by Index Investing News
May 29, 2025
0

Union Minister of Commerce and Trade Piyush Goyal mentioned on Thursday that India is on monitor to turn out to...

FSSAI asks meals corporations to take away “100 per cent” declare from labels

FSSAI asks meals corporations to take away “100 per cent” declare from labels

by Index Investing News
May 29, 2025
0

The Meals Security and Requirements Authority of India (FSSAI) has requested meals and beverage corporations to take away the time...

Next Post
The Witch of October Is Here: Remember Short-Term Pain = Long-Term Progress

The Witch of October Is Here: Remember Short-Term Pain = Long-Term Progress

SmartyPig Review 2022 – Simple Savings and Financial Goals

SmartyPig Review 2022 - Simple Savings and Financial Goals

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Charity Begins at Residence – Econlib

Charity Begins at Residence – Econlib

December 24, 2024
ENS Whales Resurfaces After Nearly 3 Years, Claims  Million Of ETH, What’s Next?

ENS Whales Resurfaces After Nearly 3 Years, Claims $74 Million Of ETH, What’s Next?

August 1, 2023
First Promo Trailer for ‘Miyazaki, Spirit of Nature’ Environmental Doc

First Promo Trailer for ‘Miyazaki, Spirit of Nature’ Environmental Doc

August 28, 2024
Mexico marks Day of the Useless with grand parade

Mexico marks Day of the Useless with grand parade

November 3, 2024
Prime 7 Tap2Earn Video games to Watch This September | by The Capital | The Capital | Sep, 2024

Prime 7 Tap2Earn Video games to Watch This September | by The Capital | The Capital | Sep, 2024

September 12, 2024
Chinese ship bound to Pakistan halted at Mumbai airport over suspected nuclear cargo

Chinese ship bound to Pakistan halted at Mumbai airport over suspected nuclear cargo

March 4, 2024
Risk-taker’s market? Protecting against market ugliness

Risk-taker’s market? Protecting against market ugliness

October 14, 2023
Nasdaq, S&P 500 trip chip-stock wave earlier than Fed verdict; Microsoft slips By Reuters

Nasdaq, S&P 500 trip chip-stock wave earlier than Fed verdict; Microsoft slips By Reuters

July 31, 2024
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In