Stocks fall on Fed rate hike worries, but bond yields dip and positive earnings offer support.

From Nasdaq: 2024-05-30 12:49:37

US stock indexes are down, with S&P 500 and Dow Jones at multi-week lows. This drop is attributed to concerns about the Fed keeping interest rates high. However, the market found some support after bond yields declined, and positive Q1 earnings results may help keep stocks afloat. Investors are eagerly awaiting the release of the April PCE core deflator data for hints on potential interest rate cuts. Additionally, comments from Atlanta Fed President Bostic hinted at readiness to reduce interest rates, with markets discounting the possibility of a rate cut in June.

European government bond yields have edged lower, with Eurozone economic confidence ticking up slightly while the unemployment rate surprisingly fell. Spain’s CPI rose, showing stronger inflation. On the stock market front, Salesforce is down after reporting disappointing Q1 revenue and revenue forecast for 2025. Other software stocks are also slipping in response. Kohl’s, UiPath, Hormel Foods, and Agilent are among the companies reporting weaker results, while HP Inc, Best Buy, and Foot Locker are showing gains following positive earnings reports.

In the earnings calendar for the day, a range of companies including Best Buy, Costco, Dollar General, Gap, Ulta Beauty, and Zscaler are set to report their financial results. Overall, the market is experiencing mixed movements with various players in the stock market reacting to the latest economic and earnings developments.



Read more at Nasdaq: Stocks Pull Back on Concern the Fed Will Keep Rates Higher for Longer