Last updated: 12:00 PM EST
Stocks are up so far in today’s trading session.Earlier today, Federal Reserve Chairman Jerome Powell told the House Financial Services Committee that he has “some confidence” that inflation will fall, but that he cannot yet say inflation is heading toward 2% sustainably.
He also said they were close to agreeing on proposed changes to Basel III rules, a set of international banking regulations aimed at tightening banks’ capital requirements and risk management to prevent financial crises.
But the Fed has yet to finalize the changes with the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency. Once finalized, the proposal will be open to public feedback. Powell said the changes would adjust some rules for large banks but would not affect the Fed’s bank stress tests.
Powell also said the Fed has just begun considering new liquidity regulations for banks and would seek public comment on any new rules.
In other news, the Mortgage Bankers Association released its weekly report on U.S. 30-year mortgage rates. Mortgage rates fell to 7% from 7.03% last week.
Despite the decline in interest rates, mortgage applications fell 0.2% week-over-week, following a 2.6% decline the previous week. Mortgage applications are also down significantly year-over-year, with the Mortgage Market Index falling to 144.3 from 165.3 on July 12, 2023.
First Published: 4:52 AM EST
U.S. futures were trading at 1.1% below the S&P 500 index on Wednesday morning.Spocks) hit a new record high yesterday. Investors are eager to hear Federal Reserve Chairman Jerome Powell’s comments on the outlook for monetary policy going forward. Chairman Powell made favorable comments in his testimony before the Senate Banking Committee on July 9 and is scheduled to speak before the House Financial Services Committee today.
Nasdaq 100 Futures (Nedix) and the S&P 500 rose 0.22% and 0.10%, respectively, while the Dow Jones Industrial Average (DJIA) was down 0.02% as of 4:51 a.m. ET on July 10.
Fed Chairman Powell hinted at a possible rate cut in the future, sending the S&P 500 higher on Tuesday. The Fed is hoping to see improving economic data in the CPI (Consumer Price Index) and PPI (Producer Price Index), due for release on July 11th and 12th, which could increase the likelihood of a rate cut at the September FOMC meeting. Earnings results released today are not worth noting.
In particular, Apple (AAPL) shares hit a 52-week high of $229.40 on July 9, and chipmaker Nvidia (NVDA) rose 2.5% after analysts at KeyBanc raised their price target to $180 from $130, citing continued momentum in demand for the company’s products.
In major after-hours trading activity, LegalZoomLanding Site) shares plunged more than 11% after the company announced the departure of CEO Dan Warnikov and a downward revision to its full-year 2024 earnings forecast.SGH) jumped nearly 6% after the company reported that both its third-quarter fiscal 2024 sales and profits beat consensus estimates.
Meanwhile, the yield on the 10-year US Treasury note has fallen to around 4.28% at the time of writing. At the same time, WTI crude oil futures have also been on a downward trend, trading around $80.95 per barrel as of last check.
Meanwhile, European markets saw stock indexes open higher as political uncertainty in France eased.
Asia Pacific markets are mixed today
Asia-Pacific stock indexes were mixed on Wednesday, with Japan’s Nikkei and Topix closing up 0.61% and 0.47%, respectively, after positive inflation data.
Meanwhile, China’s Shanghai Composite Index, Shenzhen Composite Index, and Hong Kong’s Hang Seng Index fell 0.68%, 0.10%, and 0.29%, respectively. China’s June CPI fell below expectations at 0.20%, while PPI fell 0.8% year-on-year as expected.
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