• Wall Street remains mixed across the board despite the US Dollar weakening.
  • US Treasury bond yields collapsed after the Fed raised rates by 25 bps.
  • Investors focus shifted toward the Federal Reserve’s monetary policy decision.

Wall Street is mixed during Thursday’s session as traders brace for a possible pause in the Federal Reserve (Fed) tightening cycle. Money market futures expect three rate cuts by the Fed at the end of 2023 following Wednesday’s 25 bps hike. The S&P 500 losses 0.18%, at 3,932.41, while the Dow Jones followed suit, down 0.20%, at 31,966.32. The Nasdaq Composite is the outlier, boosted by mega-cap companies, up 0.36%, at 11,711.29.

Sentiment improved after US Treasury Secretary Janet Yellen rattled financial markets, expressing that the United States (US) government is not planning to introduce blanket insurance to all depositors on Wednesday. At the same time, the US Federal Reserve Chair Jerome Powell emphasized that the banking system is solid after the Fed took steps to provide liquidity to the markets.

Additionally, traders shrugged off a 25 bps rate hike by the Fed, even though Jerome Powell expressed that inflation is too high and the labor market remains tight. Regarding the latter, US Initial Jobless Claims for the last week rose less than estimates, reaching 191K, below forecasts of 201K. Therefore, further tightening is expected by the US central bank.

The Chicago Fed National Activity Index for February plunged to -0.19 vs. the prior’s month 0.23

US Treasury bond yields continue to fall, weighed by investors expecting an additional rate hike by the Fed and then a pause. The 2-year bond yield dropped to 3.833%, down nine bps, while the 10-year bond yield fell one bps to 3.428%.

Sector-wise, Communication Services, Technology, and Real Estate led the pack, each up 1.66 %, 1.38%, and 0.01%. Contrarily, Energy, Utilities, and Financials, finished with losses of 1.47%, 0.87%, and 0.51%m respectively.

In the FX space, the US Dollar Index (DXY), which tracks the buck’s value against a basket of six currencies, lost 0.01%, down at 102.528, after hitting a weekly low of 101.910.

S&P 500 Daily chart

S&P 500 Daily chart

 

 

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 stays below 1.0700 after upbeat US PMI data

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays on the back foot and trades in negative territory below 1.0700 as the US Dollar benefits from upbeat data in the American session. S&P Global reported that the economic activity in the US private sector continued to expand at a robust pace in June.

EUR/USD News

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD remains under bearish pressure and trades at its lowest level since mid-May below 1.2650. The stronger-than-forecast Manufacturing and Services PMI data from the US helps the USD hold its ground and causes the pair to stretch lower.

GBP/USD News

Gold drops below $2,340 as US yields rebound

Gold drops below $2,340 as US yields rebound

Gold loses its traction and trades deep in the red below $2,340 in the second half of the day on Friday. The benchmark 10-year US Treasury bond yield pushes higher following the upbeat PMI data from the US, weighing on XAU/USD.

Gold News

Bitcoin retraces to crucial support

Bitcoin retraces to crucial support

Bitcoin price encounters resistance at weekly highs before retracing to seek support at a crucial level, while Ethereum and Ripple align closely with Bitcoin's movements, gearing up to surpass resistance barriers and embark on upward rallies.

Read more

Week ahead – US PCE inflation the highlight of a relatively light agenda

Week ahead – US PCE inflation the highlight of a relatively light agenda

Core PCE inflation to test bets of two Fed rate cuts in 2024. Yen awaits BoJ Summary of Opinions, Tokyo CPI. Canadian CPI data also enters the spotlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures