Major US indexes fall as Fed rate hike fears return

07Sep

Major US indexes fall as Fed rate hike fears return

 

Stocks sold off Wednesday, continuing the sluggish start to September, as concerns mounted that the Federal Reserve may not be done hiking interest rates.

The Dow Jones Industrial Average sank 198.78 points, or 0.57 per cent, to end at 34,443.19. The S&P 500 dropped 0.7 per cent to finish at 4,465.48, while the Nasdaq Composite shed 1.06 per cent to close at 13,872.47.

Treasury yields jumped, weighing on risk assets again. The yield on the 2-year Treasury note was last up about 6 basis points and trading above the 5 per cent level.

Pressured by rates, technology stocks underperformed, with the tech-heavy Nasdaq notching a third straight day of losses. The biggest laggards included Nvidia and Apple, dropping more than 3 per cent each. Along with Apple, Amgen and Boeing fell about 2 per cent each, weighing on the Dow.

Wednesday’s rise in Treasury yields coincided with stronger-than-expected economic data that fueled some concern over the likelihood of further hikes. Recent readings on both the services and manufacturing sectors of the US economy show that prices are moving in the wrong direction.

The prices component of the ISM services index rose 2.1 percentage points to 58.9 per cent in August, representing the share of companies reporting increases as well a four-month high.

Following the services report, the probability that the Federal Reserve will raise interest rates in November increased. As of Wednesday afternoon, traders are pricing in a greater than 40 per cent probability of a hike in November and a 93 per cent chance that the central bank holds rates steady this month, according to the CME Group.

Turning to commodities, platinum is set to experience a record supply deficit of over one million ounces in 2023 due to strong demand and flat supply. Global demand for platinum is expected to grow by 27 per cent to 8.2 million ounces in 2023, while supply will remain unchanged at 7.2 million ounces, partly due to electricity shortages in South Africa. The WPIC anticipates continued growth in automotive and industrial consumption, supporting platinum demand in 2024 and beyond.

Turning to US sectors, Utilities was the best performer overnight, followed by Energy. All other sectors closed lower. Tech was the worst performer.
 
Futures

The SPI futures are pointing to a 0.5 per cent fall.

Currency

One Australian dollar at 7:25 AM was buying 63.83 US cents.

Commodities

Gold lost 0.43 per cent. Silver dropped 1.55 per cent. Copper fell 1.62 per cent. Oil added 0.98 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.16 per cent, Frankfurt slipped 0.19 per cent, and Paris closed 0.84 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei added 0.62 per cent, Hong Kong’s Hang Seng lost 0.04 per cent while China’s Shanghai Composite closed 0.12 per cent higher.

The Australian sharemarket closed 0.78 per cent lower at 7,257.

Ex-dividends

Auswide Bank Ltd (ASX:ABA) is paying 21 cents fully franked
Air New Zealand (ASX:AIZ) is paying 5.5453 cents unfranked
APM Human Services (ASX:APM) is paying 5 cents fully franked
ASX Limited (ASX:ASX) is paying 112.1 cents fully franked
AUB Group Ltd (ASX:AUB) is paying 47 cents fully franked
BHP Group Limited (ASX:BHP) is paying 125 cents fully franked
Beacon Lighting Grp (ASX:BLX) is paying 4 cents fully franked
Contact Energy Ltd (ASX:CEN) is paying 18.9331 cents unfranked
Cryosite Limited (ASX:CTE) is paying 1.5 cents unfranked
Ebos Group Ltd (ASX:EBO) is paying 46.771 cents 95.77 per cent franked
Emeco Holdings (ASX:EHL) is paying 1.25 cents fully franked
Fleetwood Ltd (ASX:FWD) is paying 2.1 cents fully franked
G8 Education Limited (ASX:GEM) is paying 1.5 cents fully franked
Globe International (ASX:GLB) is paying 5 cents fully franked
Helloworld Travl Ltd (ASX:HLO) is paying 6 cents fully franked
Insignia Financial (ASX:IFL) is paying 9.3 cents unfranked
Laserbond Limited (ASX:LBL) is paying 0.8 cents fully franked
Michael Hill Int (ASX:MHJ) is paying 3.5 cents unfranked
McMillan Shakespeare (ASX:MMS) is paying 66 cents fully franked
Monadelphous Group (ASX:MND) is paying 25 cents fully franked
Monash IVF Group Ltd (ASX:MVF) is paying 2.2 cents fully franked
Perpetual Limited (ASX:PPT) is paying 65 cents 40 per cent franked
Resimac Grp Ltd (ASX:RMC) is paying 4 cents fully franked
Reliance Worldwide (ASX:RWC) is paying 7.7481 cents unfranked
SDI Limited (ASX:SDI) is paying 1.75 cents fully franked
Schaffer Corp. Ltd (ASX:SFC) is paying 45 cents fully franked
Shriro Holdings Ltd (ASX:SHM) is paying 6.5 cents fully franked
Smartgrp Corporation (ASX:SIQ) is paying 15.5 cents fully franked
Skycity Ent Grp Ltd (ASX:SKC) is paying 5.5473 cents unfranked
Sky Network (ASX:SKT) is paying 8.3179 cents unfranked
Super Retail Group (ASX:SUL) is paying 69 cents fully franked
Tribeca Global (ASX:TGF) is paying 5 cents fully franked
Thorney Opp Ltd (ASX:TOP) is paying 1.45 cents fully franked

Dividends payable

Ansell Ltd (ASX:ANN)
Magellan Financial Group Ltd (ASX:MFG)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
Copyright 2023 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

30Nov

AUD advances against the USD: ASX poised to open higher

30 Nov 2020 - The ASX looks set to open higher this morning as shares on Wall Street ended their week up. The Aussie dollar advanced and now sits just under 0.74 US dollars. Dr. Anthony Fauci, the top infectious disease expert in the US, said yesterday that the States is heading into a difficult period of the coronavirus pandemic. He said current restrictions will be necessary for the Christmas holiday season. Synlait Milk (ASX:SM1) is pleased to announce...

Read More
02Sep

US stocks rally as inflation data meets expectations

02 Sep 2024 - US stocks surged on Friday, with the Dow Jones Industrial Average hitting a new record high as investors closed out a turbulent month on a positive note. Traders were also digesting key inflation data closely monitored by the Federal Reserve.

Read More
03Aug

Fitch Ratings cuts US credit rating to AA+

03 Aug 2023 - Stocks hit selloff mode Wednesday, and the Nasdaq Composite registered its worst day since February, after Fitch Ratings cut the long-term foreign currency issuer default rating for the US to AA+ from AAA Tuesday night, citing “expected fiscal deterioration over the next three years.”

Read More
04Feb

JB Hi-Fi & Harvey Norman rise after broker upgrades: Aus shares 0.2% higher at noon

04 Feb 2020 - The local sharemarket is trading higher at noon following a flat start to trade. Six of the ten sectors in the green with healthcare leading the gains. Going the other way are the major miners which are weighing on the market. Harvey Norman is up over 6 per cent and JB Hi-Fi is up almost 4 per cent on broker upgrades.

Read More
18Dec

Afternoon update: ASX 200 drops 0.32% amid Real Estate sector losses

18 Dec 2023 - By mid-afternoon, the ASX 200 was down 0.32 per cent. This decline was primarily driven by losses in the real estate sector, particularly Charter Hall (ASX:CHC) and Dexus (ASX:DXS), which lost 1.6 per cent and 1.7 per cent, respectively.

Read More
12Apr

S&P 500, Dow Jones closes on record high ahead of earnings season: ASX to edge higher

12 Apr 2021 - The ASX is set to rise following Wall St ending last week in the black. Technology shares powered the indexes with the Dow Jones and the S&P 500 closing the session at record high. The local market closed 2.4% higher over the week to a new bull-market high led by technology, materials and consumer discretionary shares.

Read More
16Dec

AUD up against a weakened USD: ASX points to a rise at the open

16 Dec 2020 - The ASX looks set to rise this morning as US stocks were boosted by a push for a fresh stimulus package. Yesterday, US Congress moved towards a federal spending package that would boost the economy. Apple shares surged by up to 4%. The AUD is on the up this morning, trading at over US75 cents. Openpay Group (ASX:OPY) reports it has had its best ever month of trading.

Read More
17Sep

Fed Reserve set to keep rates at near zero: ASX poised to open lower

17 Sep 2020 - The ASX looks set to open lower this morning as stocks in the US fell after a tech sell-off and Federal Reserve Chairman Jerome Powell vows to keep rates near zero for three years. Platinum Asset Management (ASX:PTM) to extend its on-market share buy-back for up to 10% of PTM’s issued share capital.

Read More
04Aug

Oil stocks rise despite falling oil price, Investors chase dividends: ASX to open higher

04 Aug 2022 - Despite the oil price being weaker, oil stocks are rising, with oil producers returning the majority of their free cash flow to shareholders via dividends and share buybacks.

Read More
06Jan

Gold miners push up the materials sector: ASX tracking 0.3% lower at noon

05 Dec 2021 - The ASX opened lower this morning. The S&P/ASX 200 Index 20 points down or 0.3% lower at 6,664. Futures are pointing to a fall of 12 points. Gold miners are pushing the materials sector higher with shares in Ramelius Resources (ASX:RMS) on the up. Shares in Unibail-Rodamco-Westfield (ASX:URW) have seen a drop today.

Read More