Stock indices finished today’s trading session in the red as the recent losing streak continues. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 1.24%, 0.58%, and 0.12%, respectively. On Wednesday, the Mortgage Bankers Association released its weekly report for the U.S. 30-Year mortgage rate, which increased to 7.13% compared to last week’s reading of 7.01%.
Despite the slight increase in the mortgage rate, the number of mortgage applications increased week-over-week by 3.3%, following last week’s increase of 0.1%. In addition, WTI crude oil fell in trading today after the Energy Information Administration (EIA) released its weekly Crude Oil Inventories report, showing an increase of 2.735 million barrels compared to last week.
U.S. futures were higher on Wednesday morning as investors looked past Federal Reserve Chair Jerome Powell’s indication of a delay in the interest rate cut. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by 0.02%, 0.2%, and 0.29%, respectively. In yesterday’s trading session, the Dow Jones index gained 0.17%, while the S&P 500 and Nasdaq Composite witnessed a third straight day of decline.
Apollo Global Management’s chief economist, Torsten Slok, believes that with no interest rate cuts in the near term, the U.S. stock market might lose momentum. He thinks that the Fed is looking to maintain elevated interest rates for a short period to achieve their desired economic slowdown. Investors are gearing up for important corporate earnings releases lined up for today, including Abbott Laboratories, ASML Holding, Prologis, U.S. Bancorp, and Las Vegas Sands.
The U.S. 10-year treasury yield was down, floating near 4.66%, while WTI crude oil futures trended lower, hovering near $84.97 per barrel. European indices opened higher today as investors looked past Powell’s comments and higher-than-expected U.K. inflation data.
In Asia-Pacific markets, Chinese markets closed higher, likely due to positive sentiment from yesterday’s strong GDP report. Hong Kong’s Hang Seng index was up 0.02%, while China’s Shanghai Composite and Shenzhen Component indices rallied. Japan’s Nikkei and Topix indices declined.
