Manage episode 374461903 series 2991632
Wall Street ended lower overnight night after the FOMC minutes showed bank officials were divided over the need for more interest rate hikes at their last meeting. Dow Jones down 181 points (-0.52%). Up 187 points at best. Down 189 points at worst. S&P 500 off 0.76%, slumping for a second day in a row, and NASDAQ slid 1.15% as tech behemoths dragged. Treasury yields climbed, reaching levels not seen in 15 years, (10Y yield rose past the 4.25% mark its highest since Nov-07) due to conflicting signals in meeting minutes and robust industrial production figures pressuring the tech sector as Meta -2.5% and Tesla -3.2%, as well as key semiconductor companies AMD -3.7% and Intel -3.6%. Conversely, Target rose 3% after beating Q2 profit estimates. USD Index rose 0.22%, rebounding from earlier losses and posted its fifth straight day of gains and gains. Gains in the dollar and treasury yields weighed on Gold, down 0.52%, hovering at its lowest level since March.
- ASX to open lower. SPI Futures down 23 points (-0.32%).
- Gold dropped 0.52% easing as FOMC provides insight into further rate hikes.
- Copper fell 0.21% hovering above a 7-week low.
- Nickel +0.4%, Aluminium flat, Zinc -0.52%, Lead -0.35%, Tin -0.14%
- WTI and Brent dropped 2.05% and 2.06% as Chinese demand fears counter tight US supplies.
- 10Y Bond Yields higher: US 4.26%, Australia 4.24%, and Germany 2.67%.
- The likelihood that the Fed will hold rates at its next meeting at 88%.
- US housing starts rose by 3.9% MoM exceeding expectations.
- US Industrial production rose 1% MoM, the most in six months, significantly above market expectations of a 0.3% rise.
- US Manufacturing production rose 0.5% MoM, rebounding from an upwardly revised 0.5% fall in June, exceeding market expectations of a flat reading.
- Russell 2000 -1.28%