Stock indices finished today’s trading session mixed as geopolitical tensions and stubborn inflation caused uncertainty. The Nasdaq 100 (NDX) and the S&P 500 (SPX) fell 2.05% and 0.88%, respectively, while the Dow Jones Industrial Average (DJIA) gained 0.56%.
Chicago Fed President Austan Goolsbee’s hawkish stance on inflation has caused concern among investors, as he joins a growing number of Federal Reserve members expressing caution. This comes as U.S. futures were trading lower on Friday morning due to escalated Middle East tensions and uncertainty about the interest rate trajectory.
The pullback in the major indices this week is attributed to expectations of the Federal Reserve delaying interest rate cuts until September or potentially refraining from any cuts in 2024. This has been supported by strong U.S. data, leading analysts to believe that interest rates will remain unchanged for the time being.
In today’s earnings calendar, major companies like Procter & Gamble, American Express, Schlumberger, and Fifth Third Bancorp are scheduled to report results. Additionally, concerns about potential oil supply disruptions following Israel’s retaliatory attack on Iran have pushed WTI crude oil futures higher.
Elsewhere, European indices opened lower today as investors were concerned about the timing of interest rate cuts and rising geopolitical tensions. In Asia-Pacific markets, indices ended the trading day in the red amid growing tensions between Iran and Israel, with declines seen in Hong Kong, China, and Japan.
Overall, the uncertainty surrounding inflation, interest rates, and geopolitical tensions continues to weigh on the markets, making it a challenging time for investors to navigate. Stay tuned for more updates on the evolving economic landscape.
