WOOF - Wall Street Set For Weak Open As Fed Speeches Key Data Eyed: Amid Bitcoin Plunge And Gold Spike Market Analyst Sees 'Nothing Breaking The Upward Trend' | Benzinga
U.S. stocks are expected to open lower on Tuesday, as worries from Monday’s session seem to carry over. Investors will be closely watching economic data, particularly job market figures, to assess the economy’s health. Strong economic data could raise concerns about the Federal Reserve maintaining interest rates or even raising them further, which would likely be negative for the stock market. Additionally, several Fed speeches scheduled for today might offer clues about the future of interest rates.
Cues From Previous Session
Strong manufacturing data released on Monday spooked investors, leading to a mixed close for the market. The Institute for Supply Management’s (ISM) manufacturing purchasing managers’ index (PMI) unexpectedly grew and moved into expansion territory. This data pushed bond yields higher, with the 10-year note yield reaching an intraday high of 4.337% before settling at 4.318%. With the expectation of potential rate cuts diminishing, investors sold stocks in response.
Major indices initially opened higher but reversed course after the ISM data release. The Dow Jones Industrial Average (DJIA) and the S&P 500 Index both dipped below the flatline in early trading and continued a steady decline into the afternoon. They then consolidated around these lower levels for the rest of the day.
The Nasdaq Composite, though lagging below the flatline in mid-day trading, managed to recover and close slightly positive. However, it remains below its recent highs on March 21st and 22nd.
Eight out of 11 S&P sectors closed in the red, with interest-rate-sensitive real estate stocks suffering the most significant losses. Conversely, communication services stocks saw a sharp rise, while energy and IT sectors also attracted some buying interest.
Index Performance (+/-) Value
Nasdaq Composite +0.11% 16,396.83
S&P 500 Index -0.20% 5,243.77
Dow Industrials -0.60% 39,566.85
Russell 2000 -1.02% 2,102.84
Insights From Analysts:
Despite fears regarding stretched valuations of tech stocks, an economist suggests they have more room to run. “Tech's momentum has withered a bit, ...