ALK - US Stocks Rebound As Powell Signals Fed Will Proceed 'Carefully' On Interest Rates: What's Driving Markets Thursday? | Benzinga
Thursday saw the U.S. stock market displaying mixed performance as 10-year Treasury yields approached the 5% threshold, only to recover in response to Federal Reserve Chair Jerome Powell‘s opening remarks prior to his Economic Club of New York address, prompting traders to scale back their expectations for interest rate increases.
The FOMC is now proceeding carefully, acknowledging that substantial tightening in financial conditions can result from an increase in bond yields, subsequently affecting policy decisions, Powell said. A period of above-trend growth may still imply “meaningful tightening” of interest rates, he said.
In response to Powell’s comments being interpreted as dovish, traders scaled back their expectations for interest rate hikes. Presently, the market is pricing in a 96% probability that interest rates will remain unchanged in November.
Investors also reacted to mixed earnings from major U.S. corporations. Tesla, Inc. experienced a significant decline of more than 9%, marking its worst session since early January 2023, in response to disappointing earnings. On the other hand, Netflix Inc. (NASDAQ:NFLX) saw a 16% increase in its stock price, fueled by better-than-expected results and a substantial surge in subscribers. This performance marked the largest one-day increase for Netflix since January 2021.
Cues From Thursday’s Trading:
The S&P 500 index saw a 0.2% rise. A similar performance was achieved by both the Dow Jones Industrial Average, representing blue-chip stocks, and the tech-heavy Nasdaq 100.
The Russell 2000 ...