US stocks gave up early gains and finished mixed as soaring rates continued to press on equities, sending the US dollar higher, while the fear gauge, CBOE Volatility Index, stayed above 32, the highest level since mid-June. The US 10-year bond yield rose to 3.98%, and the yield on the UK 10-year gilt hits 4.50%, both of which are the highest seen in October 2008. A slew of the Fed’s officials continued to back “higher for longer” rates to rein in stubborn inflation, while the US economic data, including new home sales and CB consumer confidence, reported stronger than expected. However, market participants may start to doubt how long the central banks can persist with the hawkish stance as the tech-heavy index, Nasdaq, outperformed for the second straight trading day.Click to enlarge the table
- The S&P 500 briefly dipped to a fresh bear market low, and Dow deepened losses to just above 29,000. Dow down 0.43%, S&P 500 declines 0.21%, and Nasdaq rose 0.25%. 7 out of the 11 sectors in the S&P 500 finished lower, with consumer Staples, Utilities and Real Estate leading losses, all down more than 1%. Energy stocks outperformed amid a rebound in oil prices. Meme stocks, including AMC Entertainment Holdings and GameStop, also jumped 9.23% and 6.86%, respectively.
- Walmart teams up with Roblox to enter the metaverse venture. The retailer giant is experimenting with its live streaming events and augmented reality to reach shoppers on the gaming platform.
- The UK benchmark rate may soar to 6% in 2023 as shown by the bond futures pricing. A deteriorated economic outlook made some major lenders, such as Virgin Money, Halifax, and Skipton building society, pause some of their mortgage offers to new customers. The British pound rose 0.4% against the US dollar to 1.0731.
- Asian markets are set to open lower after the one-day bounce as the elevating rates may continue to weigh on sentiment. ASX futures were down 0.60%. Nikkei225 futures fell 0.46% and Hang Seng Index futures slumped 1.21%. The Asian currencies reverse early gains against the king dollar and weakened further.
- Crude prices rebounded on supply concerns about the US Gulf of Mexico due to the potential Hurricane Ian disruption, which threatens Florida’s western coastline.
- Bitcoin gave up early gains as sentiment soured amid global headwinds. The largest market cap cryptocurrency rose as high as 6% to just above 20,3000 before pulling back to the opening price at just above 19,000.
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.