Stock Market Today: S&P 500 rally stalls as Treasury yields jump ahead of CPI data
The S&P 500 closes lower Tuesday, taking a breather from its recent melt-up, pressured by a surge in Treasury yields just a day ahead of fresh inflation data.
At 4.00 p.m. ET (2100 GMT), the Dow Jones Industrial Average fell 382 points, or 0.6%, the S&P 500 index fell 0.3%, and the NASDAQ Composite fell 0.1%. Yields jump CPI data, Fedspeak awaited
Treasury yields jumped Tuesday, with yields on the 10-year Treasury10 rising 9 basis points as investors grow wary ahead of key consumer price index inflation data due on Wednesday.
Inflation is expected to have remained steady in October from the prior month amid continued resilience in the US economy, but any signs of elevated inflation could potentially delay the Federal Reserve’s plans to cut interest rates further.
The Fed cut rates by 25 basis points last week, and reiterated that it would maintain a data-driven approach to further easing.
Recent signs of sticky inflation spurred some doubts over just how much further interest rates will fall. Traders were seen pricing in a 70.7% chance for another 25 bps cut in December, and a 29.3% chance rates will remain unchanged, CME Fedwatch showed.
Beyond the CPI data, focus this week is also on addresses from a slew of Fed officials for more insight into the central bank’s plans for rates.
Richmond Fed President Thomas Barkin said Tuesday that the labor market is resilient, but the Fed is in position to respond to risks as needed. Earnings parade continues
The quarterly corporate earnings season is beginning to ebb, although several firms are still due to unveil their latest results.
Home Depot (NYSE:HD ) stock fell 1.3% after the DIY retailer raised its annual same-store sales forecast, betting on resilient demand from professional contractors to offset weak spending on bigger projects such as kitchen renovations.
Shopify (NYSE:SHOP ) stock soared 20% after the Canadian e-commerce retailer forecast fourth-quarter revenue growth above estimates, while Live Nation Entertainment (NYSE:LYV ) stock rose 5% after the entertainment giant beat estimates for third-quarter profit, helped by cost controls and the high prices of concert tickets.
Hertz (NASDAQ:HTZ ) stock added nearly 9% after a wider-than-expected third-quarter loss and missed revenue estimates on Tuesday, hurt by depreciation charges from its fleet vehicles.
Tyson Foods (NYSE:TSN ) stock gained more than 6% after the food giant reported better-than-expected fourth-quarter earnings and revenue while also providing an optimistic outlook for fiscal 2025.
Beyond earnings, Netflix Inc (NASDAQ:NFLX ), up nearly 2%, was also in the spotlight after announcing that the advertising-tier of its streaming service now has 70 million monthly active users. (Peter Nurse, Ambar Warrick contributed to this article.)
Source: Investing.com
