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Last updated: 4pm EST
The stock index ended today’s trading in the red. Nasdaq 100 (NDX), S&P 500 (SPX), Dow Jones Industrial Average (DJIA) fell by 0.01%, 0.37%, and 0.62%, respectively. Additionally, the 10-year US Treasury yield rose 12 basis points to 4.06%. Similarly, the yield on two-year government bonds has risen, hovering around 4.23%.
Earlier, Federal Reserve President Christopher Waller said the Fed is considering cutting interest rates this year if inflation remains under control. Waller stressed the importance of a “planned and cautious” approach to rate cuts, warning against expectations that aggressive easing could begin as early as March. He also stressed that future decisions on rate cuts will depend on future economic data.
On the consumer side, spending continued in December, but at a slower pace. According to the New York Fed, the median monthly household spending growth rate in December 2023 was 5.0%, down from 5.5% in August 2022 and 7.1% in December. Still, this is significantly higher than pre-pandemic levels. In December 2019, it was 2.5%.
The survey pointed to a decline in the proportion of households who made big purchases in the past four months and lower expectations for spending growth over the coming year. Interestingly, more households began to prioritize debt repayment when faced with an unexpected 10% increase in income. These trends reflect a cautious consumer mindset in the face of economic uncertainty.
First published: 4 a.m. ET
U.S. futures edged lower on Tuesday morning ahead of big bank profits scheduled for today and key economic data coming up. Nasdaq 100 futures (NDX), S&P 500 (SPX), Dow Jones Industrial Average (DJIA) were down 0.81%, 0.59%, and 0.52%, respectively, as of 3:21 a.m. ET on January 16th.
Turning to earnings, Citigroup (C), JPMorgan Chase (J.P.M.), Bank of America (BAC), the banking season started last week. All three companies released mixed earnings reports. On the other hand, Goldman Sachs (G.S.), Morgan Stanley (M.S.), and PNC Financial (PNC) is scheduled to report its quarterly results today.
In addition, Uber (Uber) is reportedly shutting down its alcohol delivery service Drizly after acquiring it for $1.1 billion in 2021. Additionally, Tesla CEO Elon Musk (TSLA) and SpaceX aim to strengthen his influence within Tesla by increasing his voting rights from his current ownership of around 13% to at least 25%.
Meanwhile, at the time of writing, oil prices were trending downwards, as the weakening global economic outlook and continued disruption to Red Sea traffic were outweighed by the strength of the dollar. WTI crude oil futures have fallen, hovering around $72.4 per barrel at the time of last check.
Elsewhere, European markets opened lower on Tuesday morning as investors awaited comments from the World Economic Forum in Davos, Switzerland. The forum will discuss issues such as rising geopolitical concerns, inflation and supply chain issues, and artificial intelligence.
Asia-Pacific markets ended mixed on Tuesday
Asia-Pacific indices ended today’s session on a mixed note.
Hong Kong’s Hang Seng Index ended 2.16% lower, while China’s Shanghai Composite Index and Shenzhen Composite Index ended 0.27% and 0.31% higher, respectively.
At the same time, Japan’s Nikkei Stock Average and TOPIX index ended down 0.79% and 0.82%, respectively.
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