Last updated: 4:07 PM EST
Stock indexes ended mixed today as geopolitical tensions and stubborn inflation created uncertainty. Nasdaq 100 (NDX) and S&P 500 (SPX) fell by 2.05% and 0.88%, respectively. On the other hand, the Dow Jones Industrial Average (DJIA) rose 0.56%.
Additionally, Chicago Fed President Austan Goolsby said Friday that inflation progress has stalled and it is premature to consider rate cuts. His current hawkish stance is notable, as he was previously one of the most dovish Fed directors.
He is the fourth person this week to express a cautious view, joining Federal Reserve Chairman Jay Powell, Cleveland Fed President Loretta Mester and New York Fed President John Williams.
First published: 4:38 a.m. ET
U.S. futures fell Friday morning on escalating tensions in the Middle East and growing uncertainty about the trajectory of interest rates. Nasdaq 100 futures (NDX), S&P 500 (SPX), Dow Jones Industrial Average (DJIA) were down 0.7%, 0.52%, and 0.46%, respectively, as of 4:26 a.m. EST on April 19th.
All three major indexes – Nasdaq Composite, S&P 500 and Dow Jones – have fallen 3.6%, 2.2% and 0.6%, respectively, over the past four days and are expected to close this week lower. The pullback has been triggered by expectations that the Federal Reserve could postpone rate cuts until September or refrain from cutting them until 2024.
Strong U.S. economic data suggests the central bank won’t cut interest rates any time soon, said Vasili Serebriaco, currency strategist at UBS. Furthermore, Justina Zabinska-La Monica, senior manager at the Conference Board, is concerned about the impact that rising consumer debt, high interest rates and persistent inflationary pressures will have on economic activity in 2024.
On today’s earnings calendar, some of the major companies scheduled to announce earnings include Procter & Gamble (P.G.), American Express (AXP), Schlumberger (S.L.B.), and Fifth Third Bancorp (FITB).
Meanwhile, the yield on 10-year U.S. government bonds has declined as of this writing, hovering around 4.59%. At the same time, WTI crude oil futures have been trending higher due to concerns about possible oil supply disruptions due to Israel’s retaliatory attacks on Iran, and were hovering around $82.86 per barrel at last check.
Elsewhere, European indexes opened lower today as investors worried about the timing of interest rate cuts and rising geopolitical tensions.
Asia-Pacific markets ended lower today
Asia-Pacific markets closed in the red amid rising tensions between Iran and Israel.
Hong Kong’s Hang Seng Index fell 0.99%. Similarly, China’s Shanghai Composite Index and Shenzhen Composite Index fell by 0.29% and 1.04%, respectively. Furthermore, Japan’s Nikkei Stock Average fell by 2.66% and the TOPIX index by 1.91%.
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