Wall Street Close: S&P 500, Nasdaq mark record closing, Dow eases

US stocks end mixed on Thursday as softer yields underpin cautious buying.
Firmer US data battles mixed Fedspeak amid a light calendar.
Nvidia, Macy’s please bulls, Cisco Systems probes advances.

Anil Panchal FXStreet

US equity markets witnessed a mild improvement in trading sentiment, despite printing a mixed daily performance for Thursday. The reason could be linked to the strong US data and comments from the Fed policymakers, as well as a pullback in the US inflation expectations and the Treasury yields.

Amid these plays, Dow Jones Industrial Average (DJIA) dropped for the second consecutive day, down 0.17% or 60 points to 35,870. On the contrary, S&P 500 and Nasdaq refresh record close while flashing 4,706 and 15,993 respectively by the end of the day’s trading.

The US inflation expectations can be linked as the key catalysts. US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, drop for the second consecutive day for Wednesday.

Further, NY Fed President and FOMC Vice-Chair John Williams highlighted inflation fears and pushed for rate action but mixed comments from Chicago Fed President Charles Evans poured cold water on the face of policy hawks. Additionally, the favorable prints of the US weekly job numbers and monthly regional manufacturing data confused the equity bulls and so do the second day of downside by the 10-year Treasury yields.

Stock-specific details suggest that Macy’s surged over 20% and Kohl’s also rose 10% on firmer annual earnings guidances while Nvidia jumped around 8.2% after Q3 earnings rallied. On the contrary, Cisco Systems couldn’t cheer upbeat earnings as sales rose less than expected amid supply chain concerns.

Looking forward, a light calendar keeps focus on the Fed rate hike talks and inflation chatters as the key catalysts, not to forget the earnings.

Read: Forex Today: Dollar dips amid further profit-taking, lira beating continues

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD bounces back above 1.3200 despite political drama in UK

GBP/USD extends the rebound above 1.3200 in the second half of the day on Friday but the pair is still down more than 1% for the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold slips back to six-day lows, targets $4,100

Gold retreats for the third consecutive day on Friday, eroding gains seen in the first half of the week and approaching the key $4,100 mark per troy ounce. Indeed, the precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the next round of US-Iran negotiations.

Solana extends correction despite ETF inflows, RWA adoption

Solana (SOL) price edges below $70 extending its losses for the fourth straight day this week. The institutional demand for Solana is building, with steady inflows so far this week and Morgan Stanley’s amended S-1 filing for a Solana-focused Exchange-Traded Fund.

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.