People walk in front of the New York Stock Exchange on Wednesday, April 3, 2024 in New York. Healthcare business Solventum began trading on the New York Stock Exchange on Wednesday. (AP Photo/Peter Morgan)
NEW YORK (AP) — U.S. stock indexes are volatile in early trading as momentum on Wall Street weakens following the huge sell-off of the past six months. The S&P 500 fell 0.1% early Wednesday, coming off its worst day in four weeks. The Dow Jones Industrial Average fell 11 points, and the Nasdaq Composite Index fell 0.3%. Intel sank after revealing details about several key parts of its business for the first time. Calmaine Foods rose after reporting better-than-expected profits for its latest quarter after selling a record number of eggs. In the bond market, government bond yields rose.
This is the latest news. Previous articles from the Associated Press are below.
Wall Street oscillated between small gains and losses in premarket trading Wednesday, a day after fears over the possibility of narrower interest rate cuts dragged the market into its worst day in weeks.
Before the bell, Dow futures were up less than 0.1%, while S&P 500 futures were down less than 0.1%.
Traders have already sharply lowered their expectations for how many rate cuts the U.S. Federal Reserve will cut this year, halving them from the six they expected at the start of the year. This would be in line with three rate cuts that Fed officials themselves have been hinting at.
With the U.S. economy, and the labor market in particular, holding up better than expected, it’s increasingly likely that the Fed will cut interest rates only twice this year. The Federal Reserve has raised its benchmark borrowing rate 11 times starting in March 2022 in an effort to quell persistent inflation that occurred during the coronavirus pandemic.
Although prices have fallen significantly over the past two years, the U.S. economy continues to show signs of health. As a result, Fed officials remain concerned that cutting interest rates too quickly could reignite inflation.
In Europe, inflation, which is weighing on consumers, fell more than expected in March to 2.4%, but analysts said it may not be enough to bring forward the ECB’s first interest rate cut. It is pointed out that there is a sex.
The latest US inflation report, covering both the wholesale and consumer levels, is expected to be released next week.
In stock trading, egg producer Calmaine Foods rose 7%, easily beating its profit target for the third quarter as demand for eggs remained strong, especially during the holiday period.
Intel stock fell 4.7% after the chipmaker outlined a new financial reporting structure and released revised financial results for its business units for the past three years. The California company reported that its foundry, or manufacturing, division lost $7 billion in 2023. Intel, one of the few chipmakers that makes its own chips, has not previously disclosed these numbers in its financial reports.
In European markets, as of midday, France’s CAC 40 index and Germany’s DAX index were each up 0.2%, while Britain’s FTSE 100 index was down 0.3%.
Japan’s benchmark Nikkei Stock Average fell 0.8% in morning trading to 39,511.88 yen. Sydney’s S&P/ASX 200 index fell 1.3% to 7,782.50. South Korea’s Kospi fell 1.4% to 2,714.18. Hong Kong’s Hang Seng Index fell 1.1% to 16,753.82, and the Shanghai Composite Index fell 0.2% to 3,070.04.
Analysts said despite recent relatively positive signs for China’s economy, there were growing concerns that the unrest rocking Wall Street could spill over into Asia.
“Investors believe this disruption could signal the beginning of a more significant market correction,” said Stephen Innes, managing partner at SPI Asset Management.
China has set an ambitious target for economic growth of around 5% this year as it seeks to overcome recent problems in its real estate sector and the lingering effects of pandemic-era disruptions.
A new Moody’s Ratings report predicts that the difficult financial situation for Japan’s manufacturing industry will worsen over the next 12 to 18 months due to the slowdown in the Chinese economy.
“China is an important market for Japanese manufacturers of factory automation and other industrial equipment, auto parts, and elevator and escalator systems. Reducing demand in China will weigh on the company’s overall earnings and cash flow.” Ta.
In energy trading, benchmark U.S. crude oil rose 85 cents to $86 a barrel. Brent crude, the international standard crude, rose 88 cents to $89.80 a barrel.
In currency trading, the dollar rose from 151.54 yen to 151.79 yen. The euro rose to $1.0784 from $1.0776.
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