- Stocks fell Thursday, with the S&P 500 suffering its worst losing streak since October.
- More comments from Fed speakers poured cold water on expectations for rate cuts.
- Wall Street is starting to take notice of the high-profile earnings, with Netflix set to report after the closing bell.
U.S. stocks on Thursday extended their losing streak to five days, marking the S&P 500’s longest decline since October.
The day poured more water on expectations for rate cuts, as several Fed speakers expressed more hawkish stances on the outlook for monetary policy.
New York Fed President Williams said there was no urgent need to cut interest rates because the U.S. economy was strong, adding that raising rates could still be considered if conditions warranted.
“We have a strong economy and we want a strong economy. It’s all very good news,” Williams told the Semaphore World Economic Summit in Washington. “If the data shows that we need to raise rates to meet our goals, then obviously we would want to do that.”
Atlanta Fed President Rafael Bostic echoed this sentiment, repeating that lowering borrowing costs is not appropriate until the end of the year.
“Inflation is high, too high. We need to get to our 2% inflation target,” Bostic said Thursday at a Prosperity Partnership meeting in Fort Lauderdale, Florida. Ta. “It’s easier to hold back.”
U.S. Treasury yields have risen towards the 5% level, continuing their rise since last week’s March inflation report showed prices rose 3.5% annually.
Tech stocks had a rough day on Thursday, but investors are looking forward to earnings from mega-cap companies that will give them another input to lift their prices and pull them out of the rut. Netflix plans to report after the closing bell, and many of the companies that make up the Magnificent Seven will also begin reporting next week.
More than 12% of S&P 500 companies have already reported earnings, with 73% beating Wall Street expectations, according to FactSet.
Here are the U.S. indexes as of Thursday’s 4 p.m. close:
Here’s what else is happening today:
In Commodities, Fixed Income and Cryptocurrencies:
- West Texas Intermediate crude oil was almost flat at $82.69 per barrel. Brent crude oil, the international benchmark, fell slightly to $87.05 per barrel.
- Gold rose 1.25% to $2,390.25 an ounce.
- The 10-year Treasury yield rose 5 basis points to 4.635%.
- Bitcoin rose 1.81% to $62,391.
