Markets in 5Thursday, October 8
Higher yields and oil weigh on stocks ahead of CPI
US stocks fell Wednesday as the 10-year Treasury yield closed at 5.28%, and European shares and US futures are lower before this morning's inflation report and a Waller speech.
Stocks
Small caps lead US indexes lower on Wednesday
The S&P 500 fell 0.22% to 7,801.77 and the Nasdaq Composite lost 0.22% to 27,538.69. The Dow Jones Industrial Average dropped 0.66% to 51,179.87, while the Russell 2000 slid 1.31% to 2,793.36. Yahoo Finance said rising Treasury yields and oil prices weighed on equities, outweighing enthusiasm over AI and earnings expectations.
Rates
Ten-year Treasury yield edges up to 5.28%
The 10-year yield closed at 5.28% on Wednesday, up 1 basis point from 5.27%, according to Treasury data. The 2-year yield eased to 4.77% from 4.79%, leaving the 2s10s spread at 51 basis points. The 30-year yield rose to 5.67% from 5.64%. The 10-year stood at 4.78% a month ago and 4.14% a year ago.
The Fed
Fed minutes show unanimous hike and tightening bias
Minutes of the September 15-16 Federal Reserve meeting, released Wednesday, showed a unanimous vote to raise rates and a bias toward further tightening, according to Tradingpedia. Most participants judged another increase appropriate by year-end. Governor Christopher Waller speaks in Istanbul today on the signaling value of economic projections, the same morning the consumer price index is released.
Global
European shares fall and US futures point lower
The Euro STOXX 50 was down 1.39%, Germany's DAX down 1.25% and the FTSE 100 down 0.62%. Futures tied to the S&P 500, Dow and Nasdaq were also lower ahead of the US open. Today's calendar has jobless claims at 8:30 a.m. Eastern, with consensus at 197,000, and CPI, with consensus at 3.6%.
Commodities
Oil holds near $90 while gold and bitcoin decline
West Texas Intermediate crude was at $90.12, up 0.76%, according to Schwab. Gold fell 1.32% to $4,109.61 an ounce on Wednesday, according to Trading Economics. Schwab also showed the US dollar index at 102.49, up 0.64%, and bitcoin at $83,453, down 2.44%.