[1/3]Traders work on the floor of the New York Stock Exchange (NYSE) on September 28, 2023 in New York City, USA.Reuters/Brendan McDiarmid/File Photo Obtaining license rights
NEW YORK (Reuters) – The Nasdaq fell on strong economic data and strong third-quarter results, suggesting the Federal Reserve may keep its tightening policy for longer than expected. fell sharply on Tuesday, while benchmark U.S. Treasury yields rose.
All three major U.S. stocks remained unchanged throughout the trading session, but the S&P 500 and the Dow Jones Industrial Average closed almost flat, while interest rate-sensitive mega-cap stocks weighed on the Nasdaq, which suffered a slight decline. Recorded.
Chip stocks came under pressure after President Joe Biden’s administration announced plans to halt shipments of more advanced artificial intelligence chips to China.
The Philadelphia SE Semiconductor Stock Index (.SOX) fell 0.8%.
Better-than-consensus retail sales data and solid profits from Bank of America (BAC.N) and Goldman Sachs (GS.N) show U.S. economy on track despite Fed anti-inflation interest rates A growing body of evidence shows that things are changing. hiking.
The two-year bond yield rose to a 17-year high, and the five-year bond yield rose to a 16-year high.
“Retail sales reports are very strong and clearly indicate that consumer sentiment is strong,” said Thomas Martin, senior portfolio manager at GLOBALT in Atlanta. “So the question is how will the market react to it? Is the good news good news or is it bad news?”
“The reason we’re seeing some confusion is that it probably won’t affect the Fed’s calculations, but we don’t know,” Martin added.
Market participants also focused on the humanitarian crisis arising from the conflict between Israel and Hamas as Mr. Biden heads to the region.
The Dow Jones Industrial Average (.DJI) rose 13.11 points (0.04%) to 33,997.65, the S&P 500 (.SPX) fell 0.43 points (0.01%) to 4,373.2, and the Nasdaq Composite Index (.IXIC) fell 34.24 points. Did. It rose 0.25% to 13,533.75.
European stocks fell as a series of weak earnings results and rising government bond yields offset gains in energy stocks and waning concerns about turmoil in the Middle East.
The pan-European STOXX 600 index (.STOXX) fell by 0.10%, while the MSCI World Stock Index (.MIWD00000PUS) rose by 0.15%.
Emerging market stocks rose 0.48%. MSCI’s broadest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) ended 0.54% higher, while Japan’s Nikkei Stock Average (.N225) ended 1.20% higher.
Benchmark U.S. Treasury yields soared after strong retail sales data led market participants to adjust their expectations for the duration of the central bank’s tightening cycle.
The price of the benchmark 10-year bond was the last to fall, yielding 4.8383% from 4.71% late Monday.
The 30-year bond last fell 30/32 in price, yielding 4.9323% from 4.866% late Monday.
As the Middle East drama unfolds and market participants brace for speeches from central bankers, the U.S. dollar fluctuates against a basket of global currencies, rising against the Japanese yen and falling against the euro. finished.
The dollar index (.DXY) fell 0.03% and the euro rose 0.15% to $1.0574.
The Japanese yen fell 0.18% against the US dollar to 149.79 yen to the dollar, while the pound traded 0.26% lower at $1.2184 in the day’s final session.
Oil prices remained flat as traders awaited Mr. Biden’s impending visit to Israel to see if diplomatic efforts could stem the escalation of conflict in the Middle East.
U.S. crude oil was unchanged at $86.66 per barrel, while Brent rose 0.28% on the day to settle at $89.90.
Gold prices stabilized as safe-haven metals benefited from heightened geopolitical uncertainty.
Spot gold rose 0.1% to $1,922.16 an ounce.
Report by Stephen Culp. Additional reporting by Serena Lee in Hong Kong and Alan John in London.Editing: Sharon Singleton, Cynthia Osterman, David Gregorio
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