HoonSmart.com>> The US stock market closed flat, the Dow Jones Index lost 42 points, the S&P500 and Nasdaq moved up slightly. After the bond yield rose to 4.67%, reducing the excitement from the strong performance of listed companies. Investors keep an eye on Q1 GDP today, expected to expand by 2.5%. “WTI crude oil prices” dropped 55 cents, while “European stock markets” closed negative.
The Dow Jones Industrial Average (DJIA) on April 24, 2024 closed at 38,460.92 points, down 42.77 points or -0.11% from concerns over interest rates after US government bond yields rose. dampens the excitement from strong operating results of listed companies
The S&P500 index closed at 5,071.63 points, up 1.08 points, +0.02%.
The Nasdaq index closed at 15,712.75 points, up 16.11 points, +0.10%.
Rising bond yields have pressured stocks. The 10-year Treasury yield rose to 4.67%, the highest of the day and approaching a 2024 high, while the 2-year Treasury yield surpassed 4.95%.
Todd Morgan, founding member and president of Bel Air Investment Advisors, said the downside to stocks is that the 10-year Treasury yield has risen 0.70% since the start of the year, which must slow down. Because if it continues to increase further, possibly to the level of 5%, it will have a negative effect in the short term for the market.
These moves come ahead of the release of key US economic data, with first-quarter GDP figures due to be released on Thursday morning. The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, is due to be released on Friday.
Investors are concerned that inflation will not fall as quickly as expected. This has raised concerns that the Fed may not cut interest rates.
Tesla shares rose about 12% after the company pledged to speed up car launches. More affordable EV models That offset lower-than-expected earnings and quarterly income that were not met. and make investors who are concerned about growth more confident.
Boeing shares rose 1% on better-than-expected results.
For other movements On Wednesday morning, President Joe Biden has signed a bill that would have the effect of banning TikTok from the United States, giving China’s ByteDance up to a year to sell TikTok or face a U.S. ban on the app. But this news report does not have much effect on social media stocks in the market.
As for the economic data reported yesterday Ministry of Commerce reports March orders for U.S. durable goods, such as airplanes, cars and heavy machinery with a useful life of three years or more, rose 2.6% from a 0.7% gain in February and were higher than the 2.5% gain analysts had expected.
Basic durable goods orders which does not include airplanes and weapons products increased by 0.2%.
Investors are also keeping an eye on the release of gross domestic product (GDP) numbers for the first quarter of 2024 today (April 25), which analysts expect will expand 2.5% from the same period last year.
European stock markets closed lower in financial and banking sectors on disappointing results from Swedish banks. Handelsbanken Meanwhile, technology stocks were spared from falling much after ASM International’s strong earnings forecast.
Bank shares fell 1.2% after Handelsbanken fell 12.1% on lower-than-expected first-quarter net profit, while SEB fell 3.7% on lower-than-expected first-quarter interest income.
Financial stocks led the group’s decline, falling 2%. Shares of Allfunds, a British fund management company, fell 11% on reports that the company had canceled talks on a potential divestment.
UBS shares fell 2.9% after bank executives expressed concern about the Swiss government’s plans to impose stricter reserve requirements.
Volvo Cars shares fell 10.3% after reporting lower quarterly profits. Meanwhile, Kering shares fell 6.9% after expecting first-half operating profits to fall 40-45%.
Technology stocks rose 1.3% behind ASM International shares. Distributor of wafer production equipment Increased revenue forecast for the 2nd quarter.
Confidence is affected After Mr. Joachim Nagel, Chairman of the Bundesliga Bank
The bank pointed out that Eurozone inflation may remain high. Therefore, the European Central Bank (ECB) may not further ease policy after cutting interest rates.
The STOXX 600 Index closed at 505.61 points, down 2.18 points, -0.43%.
The FTSE 100 London Stock Exchange index closed at 8,040.38 points, down 4.43 points, -0.06%.
The French stock market CAC-40 index closed at 8,091.86 points, down 13.92 points, -0.17%.
The German stock market DAX index closed at 18,088.70 points, down 48.95 points, -0.27%.
WTI crude oil for June delivery fell 55 cents, or 0.66%, to close at 82.81 dollars per barrel. And the price of North Sea Brent crude oil for June delivery dropped 40 cents or 0.45% to close at 88.02 dollars per barrel.
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