US stock indexes opened mixed
2022.12.19 11:20
US stock indexes opened mixed
Budrigannews.com – As a lack of market catalysts kept investors largely on the sidelines at the beginning of a likely low-volume, pre-holiday week, U.S. stocks were mixed and benchmark Treasury yields rose on Monday.
In the wake of last week’s flight to safety, which was fueled by concerns about a recession and the Federal Reserve’s hawkish rhetoric as it wages war against inflation, investors favored defensive stocks and turned red in the and the tech-heavy Nasdaq, while the blue-chip Dow maintained a modest gain.
The S&P 500, Dow, and Nasdaq are on track to suffer their largest annual percentage losses since 2008, when the global financial crisis was at its lowest point. There are only two weeks left in 2022.
Huw Roberts, head of analytics at Quant Insight in London, stated, “To take a step back, the overwhelming theme of 2022 has been all about inflation and the Fed’s policy response.” Similar to 2008, we have experienced a financial shock, but for different reasons.”
When the Federal Reserve downgraded its economic outlook and warned that restrictive interest rates will rise higher and last longer than many might have hoped, market participants have been caught in a tug-of-war between signs of economic softness that could lead to a dovish pivot and hopes that were dashed.
Roberts went on to say that “just as markets get excited by a dovish pivot, (they) are undone by policy tightening.”
The climbed 21.35 points, or 0.06%, to 32,941.81, while the S&P 500 fell 89.22 points, or 0.83%, to 10,616.20 and lost 11.14 points, or 0.29 percent, to 3,841.22.
Despite the wreckage of the brutal sell-off that occurred last week, which was largely caused by fears of a coming recession and central banks raising interest rates, European shares gained ground.
The dish European record rose 0.43% and MSCI’s measure of stocks across the globe shed 0.23%.
Stocks in emerging markets lost 0.05%. Outside of Japan, MSCI’s broadest index of Asia-Pacific shares ended 0.23 percent lower and down 1.05 percent.
As investors considered how much the Federal Reserve will raise interest rates and how long they will remain at restrictive levels in its fight against inflation, U.S. Treasury yields increased.
The price of benchmark 10-year notes dropped 26/32 to 3.5754 percent, down from 3.482% late on Friday. Yields and prices are inversely correlated.
The 30-year bond’s price dropped 65/32 to 3.638%, down from 3.533% late on Friday.
A slight increase in investor risk appetite supported a nominal decline in the dollar’s value against a basket of global currencies.
The euro rose by 0.01% to $1.0583, while the fell by 0.02%.
Sterling was last seen trading at $1.213, down 0.08% on the day, while the Japanese yen was down 0.08% against the US dollar at 136.84 per dollar.
As a result of China’s relaxation of its zero-COVID policy, crude prices increased in the hope that this would result in increased demand.
More Chewing gums sold for $1.35 billion
climbed 0.48 percent to $74.65 per barrel before closing at $79.57, up 0.67 percent for the day.
Gold remained unchanged despite the weakening of the dollar and the absence of catalysts.
sank by 0.2 percent to $1,788.39 per ounce.
