Nasdaq, Dow, S&P mixed as investors brace for Powell comments after jobs report
Wall Street’s main indexes on Tuesday were heading for a higher end after Federal Reserve Director Jerome Powell said he expected to see “a significant drop in inflation” this year. and refrain from making very hawkish comments about last Friday job report boom.
Powell, at an event in Washington, DC, also repeat His monetary policy decision-maker commented that a “de-inflation process” had begun. On the topic of last Friday’s booming jobs report, the Fed chief said that the data shows the central bank still has some way to go and there could be more rate hikes ahead. .
With less than an hour of trading left, the tech-heavy Nasdaq Composite (COMP.IND) is now up 1.36% up 12,048.84 points. The benchmark S&P 500 (SP500) To be 0.91% higher to 4,148.64 points. Dow blue-chip index (DJI) Have up 0.44% to 34,040.47 points.
All three indexes showed some volatility as Powell began speaking. They hit a session high and then reverse after the event ends. Since then, they have climbed back up.
Of the 11 S&P sectors, five are currently trading in the red, led by Consumer Essentials and Utilities. Energy and Technology led the gainers.
Treasury yields faltered after Powell’s comments. The yield on the 10-year Treasury note (US10Y) has now risen 5 basis points to 3.68%, while the 2-year yield (US2Y) rose 1 basis point to 4.47%.
“Powell’s remarks today at the Economic Club of Washington are quite similar to what he said after the FOMC meeting last Wednesday: the disinfection process has begun, it has a long way to go, and may need to raise rates further,” JPMorgan’s Michael Feroli said in a note.
“While he has no intention of ‘setting a record’ following the perceived dovishness in the press last week, he did warn that the top of the fund rate could be higher, especially if the market the labor market remains strong.In short, this is an announcement about data dependence,” added Feroli.
Minneapolis Fed President Neel Kashkari on Tuesday the report says that Friday’s jobs data shows the central bank has more work to do in tightening policy. He expects the Fed’s policy rate to rise to ~5.4% from its current target range of 4.5%-4.75%.
Switch to economic calendar Tuesday, December import and export The figures have arrived, with the goods and services trade deficit growing less than expected.
In earnings-related stock moves, Skyworks (SWKS) are among the biggest percentage gainers on the S&P 500 (SP500) after it results and a $2 billion stock buyback program.
Fiserv (FISV) are also among the S&P’s top percentage gainers after a quarter of a year The quarterly report is well received in a challenging environment.
Video game publisher Take two (TTWO) And Activating blizzard (ATVI) also enhanced after their results.
Among other active stocks, Bed Bath & Beyond (BBBY) is the top percentage loss on the Nasdaq Composite (COMP.IND) EQUAL Wild swings in stocks continue.