Stocks rose on strong tech performance, despite tensions in Middle East
From Nasdaq: 2024-10-08 12:52:50
Stocks posted gains today, with the S&P 500 up +0.76%, Dow Jones up +0.07%, and Nasdaq 100 up +1.25%. The Nasdaq 100 hit a 1-week high on tech strength. NY Fed President’s upbeat comments buoyed markets, along with a drop in the US trade deficit. 10-year T-note yields hit a 2-1/4 month high.
Tensions in the Middle East persist, with Israel launching an offensive in Lebanon against Hezbollah. Markets await Israel’s response to Iran’s recent missile barrage. Discussions between Israeli and US defense officials are scheduled for Wednesday. Meanwhile, the US Aug trade deficit narrowed to its smallest in 5 months at -$70.4 billion.
Fed Governor Kugler stressed the importance of bringing inflation back to the 2% target without hindering employment growth. St. Louis Fed President Musalem warned against easing too quickly. The markets are focused on US consumer price data on Thursday and the start of Q3 earnings season on Friday. Expectations for a -25 bp rate cut in November stand at 88%.
Overseas markets were mixed today, with the Euro Stoxx 50 down -0.47%, Shanghai Composite up +4.59%, and Nikkei Stock 225 down -1.00%. In the interest rate market, 10-year T-notes faced downward pressure due to stock strength and hawkish comments. European government bonds saw their yields fall back after early advances.
Stock movers included tech giants like Apple, Amazon, and Microsoft, all up more than +1%. Travel stocks and cruise operators rebounded on a drop in crude prices and positive comments from NY Fed President. Energy stocks, however, saw declines with WTI crude falling over -4%. US-listed Chinese stocks and mining stocks were under pressure after China’s lack of stimulus measures.
Earnings reports today include Accolade Inc, Critical Metals Corp, IDT Corp, and PepsiCo Inc. This news roundup covers market movements, geopolitical tensions, central bank commentary, and stock performance across various sectors.
Read more at Nasdaq: Stocks Climb on Strength in Megacap Tech Stocks