On Thursday morning, Wall Street markets were little changed as crude oil prices plunged dramatically following the announcement that President Joe Biden would release large amounts of strategic reserves over several months to combat inflation.
Dow Jones today futures were slightly lower than their fair values. The futures for the S&P 500 index rose by 0.1%. Futures for the Nasdaq 100 index rose 0.3%.
In March, China’s industrial and service sectors contracted for the first time since February 2020, in the period when the coronavirus epidemic ravaged Wuhan. The Dow and Treasury rates are likely to move on Thursday’s inflation data.
The Dow Jones Industrial Average fell 0.2 percent in Wednesday’s stock exchange trade. The PSX stock was among the top performers on the S&P 500 index, which dropped 0.6 percent. The Nasdaq Composite Index Index saw stocks fall 1.2%. The Russell 2000 small-cap index saw a 1.9 percent decline.
Crude oil prices rose 3.4% to $107.82 per barrel. The cost of essential metals has also increased, in addition to precious metals.
The yield on the 10-year Treasury fell four basis points to 2.36 percent. The two-year yield dropped four basis points to 2.31 %, a difference of just five. As a result, the yield curve temporarily inverted on Tuesday.
That is a sign that things have been moving in the right direction. On the other hand, the yield curve inverted on Wednesday, which was bad news for conventional lenders, led to the most significant losses at regional banks.
Despite the higher interest rate trend, it is also a sign of a possible recession. However, the inverted yield curve doesn’t usually foreshadow a stock market decline or recession for several months.
Thursday will be a momentous day for vital inflation statistics. On Wednesday, the leading indices closed slightly lower despite a recent stock market rally. Treasuries also rose with the rise in crude oil prices and other commodities.
Banks were the most significant losers as Treasury rates fell and the yield curve was close to inversion. Chips and software also declined after many days of advances. However, Apple shares, Tesla (TSLA), Microsoft(MSFT), and Google parent Alphabet Google (GOOGL) all remained static.
Although a slowdown in the market would be helpful, Apple (AAPL) is currently in a buy range. In addition, Microsoft, Google, and Tesla shares are higher than their early-entry levels.
Other commodities bets were also returned, including fertilizer, energy, and metals. Many people have had their sentences extended. While Shell (SHEL) and Philips 66(PSX) both are close to suitable entry points, the latter appears to be a long-term underperformer within the oil and gas industry.
The price of crude oil in the US has dropped by nearly 6%. Plans are being made to release approximately one million barrels per hour of strategic reserves over several months to combat rising gasoline prices and supply concerns due to Russia’s invasion of Ukraine.
That was stated in a variety of news stories on Wednesday night. Vice President Joe Biden will speak on Thursday about measures to lower energy prices, and there might be an announcement. Vice President Biden’s popularity is plummeting as inflation reaches 40-year highs. The odds favor a Republican takeover in November.
Today’s meeting of OPEC+ will discuss, among other matters, oil prices, and supply. Russia is included in OPEC+, and it is expected to continue a gradual increase in supply.
Commerce Department will release the February income and expense report at 8:30 AM. ET on Thursday. The Fed’s preferred inflation indicator, the personal consumption expenditures price indices, is expected to see a 6.4% increase year-over-year. Inflation at PCE is expected to rise to 5% over the next few months. Friday will see the Labor Department release March employment data.
A couple of inflation readings will be available before the Federal Reserve’s next meeting on May 3-4. First, however, the inflation and employment data will indicate whether policymakers will increase rates by 50 basis points or quarter-points in May and subsequent sessions.
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