• The S&P 500 and the Dow Jones edge higher while the Nasdaq 100 remains downward pressured.
  • US Treasury bond yields collapsed after the Fed’s decision, as investors expect a rate cut.
  • US economic data was mixed, spurred by cumulative tightening by the Fed.

US equities are trading mixed across the board due to a dampened market mood caused by a crisis with Deutsche Bank (DB) being in the spotlight. The shares of the German bank dropped 14%, while its CDS, a form of insurance against its default, skyrocketed 200 bps.

In the mid-North American session, the S&P 500 and the Dow Jones are climbing 0.10% and 0.06%, each at3951.28 and 32119.30, respectively. Contrarily the heavy-tech Nasdaq Composite is down 0.23%, at 11757.02.

S&P Global revealed that business activity in the United States (US) during March improved, above estimates and the prior month’s readings. Nonetheless, the S&P Global Manufacturing PMI was shy of expansion territory, at 49.3, but smashed estimates and February’s data.

Meanwhile, US Durable Good Orders plummeted 1%, beneath forecasts of 0.6% but exceeded the previous month’s 5% decline, reported the US Department of Commerce. Excluding transportation equipment, it remained unchanged. Albeit the report was better than January’s data, the cumulative tightening by the Federal Reserve (Fed) could begin to weigh on businesses, as traders are expecting a hard landing by the Fed.

Sector-wise, the three main drivers of Wall Street are Utilities, Consumer Staples, and Real Estate, each gaining 2.08%, 1.37%, and 1.18%. The laggards are Consumer Discretionary, Technology, and Financials, down 0.79%, 0.45%, and 0.34%.

In the FX space, the US Dollar Index (DXY) found a bid, gains 0.53%, at 103.135, despite falling US Treasury bond yields. The US 10-year Treasury bond yield falls six basis points, down at 3.372%, putting a lid on the greenback gains

Federal Reserve officials were one of the reasons that underpinned the greenback, with Bostic and Bullard saying that the US central bank needs to get inflation under control. Bullard foresees the Federal Funds Rate (FFR) to peak at around 5.50% - 5.75%, meaning policymakers are short three-quarters of percentage points. Atlanta’s Fed President Bostic said there was a “debate” in the latest FOMC meeting about raising rates. HE confirmed that signs that the banking system is solid were the main reason to pull the trigger.

S&P 500 Daily chart

S&P 500 Daily chart

What to watch

 
Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends recovery toward 1.0750

EUR/USD extends recovery toward 1.0750

EUR/USD preserves its recovery momentum and edges higher toward 1.0750 on Monday, after closing the previous week in negative territory. The improving risk mood makes it difficult for the US Dollar to find demand and helps the pair stretch higher.

EUR/USD News

GBP/USD rises toward 1.2700 on renewed USD weakness

GBP/USD rises toward 1.2700 on renewed USD weakness

GBP/USD trades in the green near 1.2700 in the second half of the day on Monday. After outperforming its rivals on upbeat PMI data on Friday, the US Dollar stays on the back foot amid a positive shift in risk sentiment, allowing the pair to extend its rebound.

GBP/USD News

Gold consolidates around $2,330 in quiet start to the week

Gold consolidates around $2,330 in quiet start to the week

After a quiet European session, Gold edges higher toward $2,330. Following Friday's sharp decline, XAU/USD manages to hold its ground as the benchmark 10-year US Treasury bond yield struggles to push higher, while the USD weakens on upbeat market mood.

Gold News

Week ahead: Bitcoin dips under $63,000, meme coins fade with steep correction in top five

Week ahead: Bitcoin dips under $63,000, meme coins fade with steep correction in top five

Bitcoin dipped under $63,000 on Monday, lowering crypto market capitalization by over 3%, per CoinGecko data. BTC is in a state of decline, and news of VanEck’s Spot Bitcoin ETF launch in Australia failed to improve traders' sentiment. 

Read more

Three things to watch this week: Key elections and inflation data

Three things to watch this week: Key elections and inflation data

 This week we have some key elections in France and the UK, and we get inflation data from the US and major European economies that will determine the course of interest rates in the coming months.

Read more

Forex MAJORS

Cryptocurrencies

Signatures