LIVE MARKETS-US stocks gain, two-year yields edge up before Fed
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
US STOCKS GAIN, TWO-YEAR YIELDS EDGE UP BEFORE FED
Stocks gained on Tuesday and the interest-rate-sensitive two-year Treasury yield edged higher ahead of Wednesday’s Federal Reserve interest rate decision, where traders will be looking for any fresh clues on the path of monetary policy.
Traders see only a 7% chance of a rate hike on Wednesday, but are pricing in 83% odds of an increase in December. Any comments by Federal Reserve Chair Kevin Warsh tomorrow on inflation will be a key focus, following September’s acceleration in consumer price pressures.
“The case for hiking is that September CPI was broadly high and did not have any major mitigating factors,” Steve Englander, co-head of FX Research, ex-China, and head of North America macro strategy at Standard Chartered Bank’s NY Branch, said in a note.
On the other hand, “the case against hiking is that the September inflation upswing may be a blip. There are indications that inflation is edging higher but few indications that it is surging,” Englander said.
Stocks, meanwhile, were boosted by improving sentiment on AI, following last week’s sharp selloff on concerns about the profitability of the sector and durability of the AI trade.
The Nasdaq Composite .IXIC was the best-performing major index, gaining 1.2%, followed by the S&P 500 .SPX, which rose 0.6%. The Dow Jones Industrial Average .DJI was roughly flat.
Tech .SPLRCT was the best-performing S&P subsector, followed by consumer discretionary .SPLRCD, while energy .SPNY was the worst performer.
Here is Tuesday’s closing market snapshot:
(Karen Brettell)
*****
EARLIER ON LIVE MARKETS:
BUYBACKS JUST HIT ANNUAL RECORD AND IT'S ONLY OCTOBER CLICK HERE
SMALL CAPS LOSE THEIR EDGE AS RATE PRESSURES BUILD — WFII CLICK HERE
WILL EXPENSIVE FLIGHTS SEND HOLIDAY DOLLARS TO THE MALL? CLICK HERE
FED FEAST: CONSUMER CONFIDENCE, DURABLE GOODS, NEW HOME SALES, ET AL CLICK HERE
AI'S PRICE WAR COULD BE A WIN FOR HYPERSCALERS, CITADEL SAYS CLICK HERE
WALL STREET TREADS WATER AHEAD OF FED, EARNINGS CLICK HERE
REST OF S&P 500 SEEN OUTPACING MAG 7 ON Q3 EARNINGS GROWTH — JEFFERIES CLICK HERE
TREASURIES REGAIN HAVEN ROLE, SIGNALING A SHIFT IN MARKET FEARS CLICK HERE
DEMOCRATIC SWEEP AND TECH SELLOFF CLICK HERE
HEALEY'S WAR CHEST CLICK HERE
BOFA OVERWEIGHT 'ANTI-AI' FOOD AND BEVERAGE STOCKS CLICK HERE
BEARISH EQUITY POSITIONING INCREASING ACROSS REGIONS CLICK HERE
SOFT START, FTSE DRAGGED LOWER BY HSBC CLICK HERE
EUROPE BEFORE THE BELL: POSITIVE TONE FADES CLICK HERE
ALL EYES ON AI CLICK HERE