US stocks edged higher on Thursday as investors anticipated comments from central bankers. Federal Reserve Chairman Jerome Powell is scheduled to speak at the Economic Club of New York later today. His speech coincides with the 10-year US Treasury yield approaching the 5% level.
Following Wednesday’s losses, US stocks made a modest recovery on Thursday as investors awaited remarks from central bankers. The focus for the day is on Federal Reserve Chairman Jerome Powell’s speech at the Economic Club of New York. Investors will closely observe whether his comments align with the more dovish sentiment expressed by other Fed officials in recent weeks, as opposed to a more hawkish stance.
Powell’s speech comes at a time when the 10-year US Treasury yield is nearing 5%. On Thursday, the yield reached a high of 4.98%, its highest level since June 2007.
In addition to the central bank news, investors are also evaluating various earnings reports. Tesla, for example, fell short of analyst expectations, while Netflix exceeded them.
Based on data from Fundstrat, 73% of the 64 S&P 500 companies that have reported earnings have surpassed profit estimates by a median of 6%.
As of the opening bell on Thursday, the US indexes stood as follows:
– S&P 500: 4,323.84, up 0.21%
– Dow Jones Industrial Average: 33,683.54, up 0.05% (18.46 points)
– Nasdaq Composite: 13,368.76, up 0.41%
Other noteworthy news for the day includes:
– A warning from Charles Schwab’s top global strategist that America is in a “cardboard-box recession,” with the potential for another surge in inflation.
– Tesla facing a potential market value loss of $40 billion as shares declined by 6% due to CEO Elon Musk’s pessimistic outlook on the Cybertruck.
– Netflix experiencing a 15% surge in its stock after revealing the addition of nearly 9 million subscribers during its third quarter.
– The black-market rate for the US dollar in Argentina soaring by 60,000% since the end of peso parity in 2002.
In commodities, bonds, and crypto:
– West Texas Intermediate crude oil dropped by 0.93% to $86.46 a barrel, while Brent crude, the international benchmark, fell by 1.08% to $90.51 a barrel.
– Gold declined by 0.20% to $1,964.40 per ounce.
– The 10-year Treasury yield rose by 5 basis points to 4.95% on Thursday.
– Bitcoin increased by 0.81% to $28,556.
Overall, US stocks saw a slight upward movement in anticipation of central bank statements, with investors closely monitoring Jerome Powell’s speech in particular. The approaching 5% US Treasury yield level and various earnings reports are also driving market sentiment.
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