ILMN - US Stocks Could Wobble As Powell's Inflation Obsession Intensifies Rate Uncertainty: Will Nasdaq Wipe Off Week's Gains? | Benzinga
U.S. stocks are priming for a lackluster open on Friday, with the index futures trading on a narrowly mixed note. Interest rate worries have likely perked up, as reflected by the upward move in bond yields. Traders are also left to digest some disappointing earnings reports. Global cues are negative as well. Given Federal Reserve Chair Jerome Powell has stirred the hornet’s nest with his comments on inflation and interest rates, the uncertainty could prove to be the undoing of the market.
The inflation expectations component of the University of Michigan’s consumer sentiment survey due after the market open and a few Fed speeches could be on traders’ radar in the final session of the week.
Cues From Thursday's Trading:
Upward momentum that kept the broader market rally going for a eighth straight session faltered on Thursday, with Powell giving a reason for taking profits.
The major averages opened uniformly higher and were seen flitting in and out of the unchanged line while moving broadly sideways until the mid-session.
Powell, who was visibly dovish in the post-meeting press conference at the start of the month, changed track and began to sing the inflation tune. While taking part in an IMF panel discussion, the chair said the central bank is committed to achieving its inflation target of 2% over time, but “we are not confident that we have achieved such a stance.”
Lukewarm reception to the Treasury’s 30-year bond auction served to aggravate the weakness.
Stocks reacted with a sharp move downwards in the afternoon before closing notably lower. The Nasdaq Composite and the S&P 500 snapped eight- and nine-session winning streaks, respectively. The two averages were on the longest winning streak since November 2020.
The Dow Industrials slid for a second straight ...