financetom
Market
financetom
/
Market
/
US Equity Indexes Turn Corner in Midday Trading as Slowdown in Fed's Preferred Inflation Gauge Soothes Frayed Nerves
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US Equity Indexes Turn Corner in Midday Trading as Slowdown in Fed's Preferred Inflation Gauge Soothes Frayed Nerves
Dec 20, 2024 10:05 AM

12:33 PM EST, 12/20/2024 (MT Newswires) -- US equity indexes jumped, recovering from a plunge pre-bell, as benign inflation data helped alleviate concern that the government is heading for a partial shutdown.

The S&P 500 soared 1.7% to 5,967.8, with the Nasdaq up 1.8% to 19,707.4 and the Dow Jones Industrial Average 1.8% higher at 43,094.9. All sectors were up intraday, with real estate, healthcare, and financials leading the gainers.

The Dow and the Nasdaq were each down more than 250 points, and the S&P 500 was 50 points lower before the market opened for regular trading. While concern remains that the US government is heading for a partial shutdown, the Federal Reserve's preferred inflation data released Friday offered some relief as month-over-month price growth slowed. The CBOE's Volatility Index (VIX), known as the fear gauge, sank by 24% after midday.

A bill proposed by House Republicans that would suspend the debt ceiling for two years and fund the government for three months failed late on Thursday, indicating that a partial shutdown will begin tonight if the Friday deadline to reach a deal runs out, according to a research note from D.A. Davidson. House Speaker Mike Johnson, who negotiated the original bipartisan deal rejected by President-Elect Trump, told reporters he has a plan and expects a vote again, CNN reported.

In economic news, the headline PCE price index grew 0.1% in November versus a 0.2% increase in October. Year over year, inflation climbed to 2.4% from 2.3. Wall Street was expecting 0.2% sequential and 2.5% annualized. The Fed's preferred core measure, which excludes food and energy, was flat at 2.8% annually but eased to 0.1% from 0.3% sequentially. The market predicted 2.9% and 0.2% growth, respectively.

US Treasury yields were mixed intraday, with the 10-year down 4.8 basis points to 4.52%.

In company news, Nike ( NKE ) reported a decline in fiscal Q2 earnings and revenue. Truist Securities said Chief Executive Officer Elliot Hill's accelerated turnaround efforts are driving pressure on the outlook for H2 fiscal 2025.

FedEx's (FDX) fiscal Q2 earnings rose more than analysts had expected while revenue missed forecast. The parcel delivery group unveiled plans to spin off its freight operations into a separate publicly listed company.

West Texas Intermediate crude oil futures fell 0.7% to $68.91 a barrel.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Sector Update: Financial
Sector Update: Financial
Jul 25, 2024
03:24 PM EDT, 07/25/2024 (MT Newswires) -- Financial stocks were rising in late Thursday afternoon trading, with the NYSE Financial Index adding 0.3% and the Financial Select Sector SPDR Fund (XLF) up 0.9%. The Philadelphia Housing Index was climbing 2.3%, while the Real Estate Select Sector SPDR Fund (XLRE) was shedding 0.3%. Bitcoin (BTC-USD) was declining 0.8% to $64,821, and...
Equities Rise Intraday as Markets Assess Earnings, GDP Report
Equities Rise Intraday as Markets Assess Earnings, GDP Report
Jul 25, 2024
02:40 PM EDT, 07/25/2024 (MT Newswires) -- US benchmark equity indexes were higher intraday as traders analyzed the latest corporate earnings and official data showing that the economy grew at a stronger-than-projected pace in the second quarter. The Dow Jones Industrial Average was up 0.9% at 40,220.3 after midday Thursday, while the S&P 500 and the Nasdaq Composite rose 0.6%...
US STOCKS-Wall Street rises as small caps advance, megacaps recover ground
US STOCKS-Wall Street rises as small caps advance, megacaps recover ground
Jul 25, 2024
* US economic growth regains steam in Q2; inflation slows * Ford slumps as higher costs, EV unit dent profit growth * IBM ( IBM ) gets boost from software, AI demand, as consulting slips * Gains for small-cap indexes Russell 2000 and S&P Small Cap 600 * Indexes up: Dow 0.9%, S&P 0.59%, Nasdaq 0.57% (Updated to 2:02 p.m....
TREASURIES-Longer-dated US yields lower after GDP data
TREASURIES-Longer-dated US yields lower after GDP data
Jul 25, 2024
(Updated at 2:27 p.m. ET/1827 GMT) By Chuck Mikolajczak NEW YORK, July 25 (Reuters) - Longer-dated U.S. Treasury yields were mostly lower on Thursday after a Wednesday tumble in equities helped fuel a safe-haven bid for bonds, while a solid reading on economic growth failed to shift expectations for a rate cut from the Federal Reserve. Yields initially pared declines...
Copyright 2023-2024 - www.financetom.com All Rights Reserved