From Nasdaq: 2024-04-10 18:11:17

Major stock indexes closed Wednesday with the S&P 500 down -0.95%, the Dow Jones down -1.09%, and the Nasdaq 100 down -0.87%. Stocks sold off as T-note yields surged after US March CPI came in above expectations, reducing likelihood of Fed rate cuts. Geopolitical tensions in the Middle East also weighed on market sentiment, further driving stock losses.

Focus remains on Fed rate cut expectations, with market pricing in only 50 bp cuts this year. March CPI figures exceeded expectations, strengthening argument for rate cuts. The prospect of maintaining restrictive policies longer also discussed at FOMC meeting.

First quarter corporate earnings season kicking off Friday with expectations for modest profit growth of +3.9% y/y. Markets pricing in low chance of -25 bp rate cut at upcoming FOMC meetings. Overseas markets like the Euro Stoxx 50 and Shanghai Composite traded mixed.

Bond yields soared Wednesday, with the 10-year T-note yield reaching 4.554%. Market reacted to stronger than expected US CPI data, fueling inflation concerns and dampening bond prices. European bond yields also rose.

Various US stocks saw significant movements with Deckers Outdoor Group and homebuilding stocks like DR Horton posting losses. Property management, REITs, and chip stocks also declined, influenced by bond yield surge. Notable gainers include Axon Enterprise and Nvidia.

Earnings reports expected for companies like CarMax, Constellation Brands, and Fastenal on April 11. Some stock analysts upgraded or downgraded predictions for companies like McKesson and Monday.com Ltd. Markets are closely watching for more earnings results and updates in the coming days.



Read more at Nasdaq: Stocks Retreat as Bond Yields Surge on US Price Pressures