Markets React as Powell Hints at Steady Rates

Markets React as Powell Hints at Steady Rates

Markets React as Powell Hints at Steady Rates

Federal Reserve Chair Jerome Powell sent shockwaves through the financial world, causing stocks to stumble and bond yields to climb. The Dow Jones Industrial Average shed 250 points, equivalent to a 0.8% dip, while the S&P 500 experienced a 0.9% tumble. The Nasdaq Composite fared no better, sinking by 1%.

The 2-year Treasury yield dropped to 5.171%, while the 10-year yield crept closer to the 5% mark, hitting 4.987%—a level unseen since 2007. Meanwhile, the 30-year yield reached 5.101%, marking its highest yield at 3 p.m. ET since 2007.

Powell, addressing an event hosted by the Economic Club of New York, hinted at a deliberate approach by the Federal Open Market Committee.

As markets grapple with these dynamics, the possibility of a significant rally appears slim, unless a major geopolitical surprise or an exceptional earnings season comes into play.

Adding to the mix, initial jobless claims registered at 198,000 on a seasonally adjusted basis earlier in the day, marking the first time they dipped below the 200,000 mark since January.

Dow futures slip as Treasury yields break 16-year highs

Stock futures dipped on Thursday evening, following a negative performance among major indices as Powell’s speech hinted at the possibility of higher rates and slower economic growth needed to tame persistent inflation.

By 6:40pm ET (10:40pm GMT) Dow Jones Futures were down 0.1%, S&P 500 Futures lost 0.2% and Nasdaq 100 Futures fell 3%.

In extended deals, SolarEdge Technologies Inc (NASDAQ:SEDG) tanked 21% after trimming Q3 revenue guidance.

Ahead in Friday’s session, traders will be parsing fresh earnings results from companies including Schlumberger NV (NYSE:SLB), American Express Company (NYSE:AXP), Santos Ltd (OTC:STOSF) and Regions Financial Corporation (NYSE:RF).

During Thursday’s regular session, the Dow Jones Industrial Average fell 250.9 points or 0.8% to 33,414.2, the S&P 500 lost 36.6 points or 0.9% to 4,278 and the NASDAQ Composite fell 13,186.2.

On the data front, jobless claims came in at 198K versus 212K expected, while existing home sales were reported at 3.96 million versus 3.89 million expected.

On the bond markets, United States 10-Year rates were just off fresh 16-year highs at 4.99%.

 

Source: Investing.com

EV Stocks Lose Charge as Tesla’s Earnings Electrify Markets

The electric vehicle (EV) stock race hit a speed bump as Tesla (NASDAQ:TSLA) led the pack on a downward spiral, thanks to its underwhelming third-quarter earnings and Elon Musk’s rather cautious outlook on the eagerly anticipated Cybertruck launch. Tesla’s stock reached a two-month low, sparking concerns of potential price cuts in a financial landscape rife with high interest rates. In the wise words of Wedbush analyst Dan Ives, it’s like navigating a rocky road in the EV world.

The Tesla tumble had a domino effect, sending the Global X Autonomous & Electric Vehicle ETF into a spin and causing a minor hiccup in S&P 500 futures. It seems that even the EV titans of China, like Nio (NYSE:NIO), XPeng Inc (NYSE:XPEV), and Li Auto (NASDAQ:LI), had their own uphill struggles, flirting with four-month lows. Meanwhile, Lucid Group and Mullen Automotive hit the skids, and Nikola Corp. found itself at a five-week low.

However, not all EV makers were caught in the crossfire. Fisker Inc. (NYSE:FSR) and VinFast Auto Ltd. (NASDAQ:VFS) faced some headwinds, while Workhorse Group Inc. dared to defy the trend with a surge of its own. It seems the EV market has its own set of twists and turns, and investors are buckling up for the ride.

Wheels of Discord Spin On: UAW President’s Facebook Live Mystery

Shawn Fain, the maestro of labor unrest, is pulling another rabbit out of his virtual hat. United Auto Workers President, Shawn Fain, will take to Facebook’s digital stage (NASDAQ:META) this Friday at 4 p.m. EDT (2000 GMT). But this isn’t just any virtual gathering; it’s a suspenseful livestream. The topic? A well-guarded secret, just like your grandma’s apple pie recipe. While 34,000 UAW members continue their selective strikes against the Detroit Three, it seems Fain is treating us to a high-stakes episode of ‘Labor Poker.’ In this game, the only thing certain is the uncertainty, and the chips are the fate of automakers. Will he announce a raise in the ongoing strike bet? Or perhaps he’s revealing the ace up his contract-sleeve?

Investing is like planting a money tree in the garden of your financial future. But instead of watering it with cash, you nourish it with a diversified portfolio and a dash of patience. With a little TLC, you’ll soon be picking the sweetest fruits of financial freedom while others are left wondering why their pockets are perpetually barren. So, whether you’re a Wall Street wizard or just a budding green thumb, remember: the sooner you start, the sooner you can kick back and sip the champagne of your investment’s success. Cheers to growing your wealth, one smart choice at a time!

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