Markets Wrap: The dollar declined as US manufacturing activity cooled
Fed officials reinforced tighter policy message on the weekend
US equities snapped a three-day rally as investors digested hawkish comments from Federal Reserve officials and data showing slower growth in the manufacturing sector.
The S&P 500 fell on Monday after notching its best month since 2020. The tech-heavy Nasdaq 100 was little changed after rising as much as 1.1%. Both indexes struggled for direction throughout the session. US Treasuries rallied, with the 10-year yield declining to around 2.59%, the lowest since April.
Market Wrap: Bitcoin Starts the Month in Negative Territory
After hinting at a possible pivot last week, Fed officials suggested that the central bank will need to raise rates further to bring inflation under control. A purchasing managers index of manufacturing was the latest data point to show that aggressive Fed tightening is starting to slow economic growth.
Stocks had roared in July on speculation the central bank was close to the end of its rate-hiking cycle on signs that runaway inflation may have peaked. Investors are now scrutinizing data, where any above-expectation reading could upend bets on a Fed pivot. At the same time, corporate earnings have largely shown that companies can deliver profit growth.
Stock Trading Hits 2022 Low Before Fed, Earnings: Markets Wrap
“July delivered a nice relief rally on a dovish interpretation of Fed comments and tech earnings that were not as dismal as expected, but it’s not surprising that we would see a retrenchment after that sort of performance,” said Dana D’Auria, co-CIO at Envestnet Inc. “We are still facing a rising rate environment and an economy that is probably technically in recession.”
Geopolitical tensions also kept markets on edge, with China again warning that its military would take action if House Speaker Nancy Pelosi makes a landmark visit to Taiwan. The offshore renminbi was down as much as 0.6% on the day in the wake of the report, while non-deliverable forwards on the Taiwanese dollar indicated a weakening of the island’s currency.
Stocks Drop Before Fed; QQQ Climbs in Late Trading: Markets Wrap
Despite a 12.6% advance from a low on June 16, the S&P 500 could face an ugly stretch. Wall Street lore says October is the most dangerous month for the stock market, but August and September are worse, with the S&P 500 averaging declines of 0.6% and 0.7%, respectively, over the past 25 years.
While more than half of the S&P 500 companies that reported earnings so far have exceeded analyst estimates, the rate of earnings beats still trails the 62% average pace set in the last five quarters. And companies are worried about the economy, with executives and analysts on track to use phrases related to an economic slowdown three times more on second-quarter calls than they did during first-quarter results.
Stocks Drop as US-China Tension Stirs Haven Demand: Markets Wrap
“The Fed does not want to trigger a recession, but their first and much stronger priority is to get inflation under control. If that means driving risk assets lower, that is what they will do,” wrote Dennis DeBusschere, the founder of 22V Research.
Oil declined after poor Chinese economic data added to concerns that a global slowdown may sap demand. West Texas Intermediate dropped below $96 a barrel after sinking almost 7% in July in the first back-to-back monthly loss since late 2020.
The dollar fell. Bitcoin dropped after reaching the highest levels since mid-June on Saturday, fueled by optimism that the market may have recovered from its worst levels.
What to watch this week:
Stocks Stage Comeback With Best Month Since 2020: Markets Wrap
Airbnb, Alibaba, and BP are among the earnings reports
Reserve Bank of Australia rate decision, Tuesday
US JOLTS job openings, Tuesday
Chicago Fed President Charles Evans and St. Louis Fed President James Bullard are due to speak at separate events, Tuesday
OPEC+ meeting on output, Wednesday
US factory orders, durable goods, ISM services, Wednesday
BOE rate decision, Thursday
US initial jobless claims, trade, Thursday
Cleveland Fed President Loretta Mester is due to speak, Thursday
US employment report for July, Friday
some of the main moves in markets:
Futures on the S&P 500 fell 0.3% as of 4:34 p.m. New York time
Futures on the Dow Jones Industrial Average fell 0.2%
The MSCI World index rose 1.2%
Stocks Defy Naysayers as Fed-Hike Premium Shrinks: Markets Wrap
The Bloomberg Dollar Spot Index fell 0.3%
The euro rose 0.4% to $1.0258
The British pound rose 0.7% to $1.2254
The Japanese yen rose 1.2% to 131.62 per dollar
The yield on 10-year Treasuries declined six basis points to 2.59%
Germany’s 10-year yield declined four basis points to 0.78%
Britain’s 10-year yield declined six basis points to 1.81%
West Texas Intermediate crude fell 4.8% to $93.88 a barrel
Gold futures rose 0.4% to $1,788.60 an ounce
https://www.quora.com › What-the-heck-does-Bloomberg
The market wrap, is usually at the end of the business day. It is a final summary to the day’s trading, and a wrap up of the events for the day after the
https://economictimes.indiatimes.com › topic › market
market wrap Latest Breaking News, Pictures, Videos, and Special Reports from The Economic Times. market wrap Blogs, Comments and Archive News on
https://finance.yahoo.com › news › stock-rebound-face
14 hours ago — (Bloomberg) — US stocks struggled for direction as investors parsed hawkish comments from Federal Reserve officials and data showing slower
https://finance.yahoo.com › news › us-china-tension-gr
1 hour ago — Stocks Drop as US-China Tension Stirs Haven Demand: Markets Wrap also in the red as July’s equity market rebound stumbled into August.
https://www.edwardjones.com › market-news-insights
3 days ago — Get Market Updates and insights from experts at Edward Jones covering last week’s performance. Weekly market wrap.
https://www.coindesk.com › tag › market-wrap
Market Wrap: Crypto Markets Trade Higher as Fed Raises Rates by Expected Amount. Investors had already largely priced in the U.S. central bank’s 75-basis point
https://www.coindesk.com › markets › 2022/08/01 › m
12 hours ago — This article originally appeared in Market Wrap, CoinDesk’s daily newsletter diving into what happened in today’s crypto markets.
https://mintgenie.livemint.com › news › markets
21 hours ago — Market Wrap: Market extends rally into 4th consecutive session; nearly 150 Major markets across the globe saw decent gains as sentiment
https://www.thestudentroom.co.uk › showthread
It’s bafflegab, kids. Probably a holdover from the old movie days, when at the end of shooting a scene, the director would announce, “That’s a wrap!” In
https://www.equiti.com › Newsroom
Be an informed trader by keeping up to date with the financial markets. Know what happened and what to expect next with our daily market wrap-ups.
https://www.moneycontrol.com › NEWS
Get all latest & breaking news on Market Wrap. Watch videos, top stories and articles on Market Wrap at moneycontrol.com.
https://www.cnbctv18.com › tags › market-wrap
Read latest news and live updates on Market–wrap including breaking news on Market–wrap,Market–wrap photos,Market–wrap videos and many more at cnbctv18.com.
https://financialpost.com › pmn › business-pmn › us-fut
6 days ago — US Futures Rise on Earnings Amid Countdown to Fed: Markets Wrap. (Bloomberg) — Stocks and US equity futures rallied Wednesday as a batch of
https://www.financialexpress.com › market
10-May-2022 — Wall Street Markets Wrap: S&P 500 ends below 4,000 for 1st time since March 2021; growth shares lead decline. The Dow Jones Industrial Average
https://www.swissinfo.ch › eng › stock-trading-hits-202
25-Jul-2022 — “It’s never easy to pick a bottom in the stock market, but I’m going to Stock Trading Hits 2022 Low Before Fed, Earnings: Markets Wrap.
https://www.bnnbloomberg.ca › stocks-fall-yields-gain-
Stocks fall, yields gain after U.S. jobs miss: Markets Wrap and with labor markets still somewhat slack, tightening is still a long way away,” said Jay