Stocks end near flat as investors assess earnings, data

Record ID: 1819282

  • Title: Stocks end near flat as investors assess earnings, data
  • Date: 18th April 2024
  • Summary: TAMPA, FLORIDA, UNITED STATES (APRIL 18, 2024) (REUTERS) (SOUNDBITE) (English) IDX ADVISORS, CHIEF INVESTMENT OFFICER, BEN MCMILLAN, SAYING: “The market is really just contending with the reality of higher for longer, you know, as the data has come in, as the macro data has come in more strong. CPI (Consumer Price Index) is coming in higher. Inflation is looking like it might have bottomed out. Inflation's looking very sticky. The jobs reports have been looking very strong. And so, we went from, you know, coming into 2024 with an expectation of six or potentially even seven rate cuts, with the first one being in March. Now, all of a sudden, the Fed has backtracked that, you know, there might only be markets pricing in one, maybe two rate cuts. I've heard as recently as today that, you know, there might be some discussions with the Fed about a potential rate increase at the end of the year. And so that is a big delta for the markets to digest. And I think a lot of that information has come in the last couple of weeks, and that's why we're seeing risk assets in particular, things like technology stocks, even hybrid assets like Bitcoin and crypto, for example, starting to reprice to this new reality. So, I think it's all eyes on the Fed for the rest of this year in terms of, you know, ‘What do they do?’ ‘How do they respond to the data?’ And of course, “What does the data look like?’”
  • Embargoed: 2nd May 2024 21:03
  • Keywords: Dow Nasdaq
  • Location: VARIOUS
  • City: VARIOUS
  • Country: US
  • Topics: Economic Events,North America,Equities Markets
  • Reuters ID: LVA002628118042024RP1
  • Aspect Ratio: 16:9
  • Story Text: U.S. stocks closed near the unchanged mark on Thursday (April 18), as investors sifted through the latest corporate earnings, while economic data and comments from Federal Reserve officials suggested the central bank was unlikely to cut interest rates in the near future.
    Economic data showed that the labor market remained resilient, as weekly initial unemployment claims were unchanged from the prior week at 212,000 while a gauge of manufacturing in the mid-Atlantic region rose to a two-year high.
    The solid labor market, recent reading showing sticky inflation, and comments from Fed officials including Chair Jerome Powell have led markets to back off expectations the central bank would cut interest rates by at least 25 basis points (bps) at its June meeting.
    The S&P 500 lost 11.09 points, or 0.22%, to end at 5,011.12 points, while the Nasdaq Composite lost 80.87 points, or 0.52%, to 15,601.50. The Dow Jones Industrial Average rose 22.07 points, or 0.06%, to 37,775.38.
    The S&P 500 saw its fifth straight session of declines, as equities have struggled recently following a five-month rally that started in November, in part due to expectations the Fed was likely to cut interest rates in the first half of the year.
    (Production: Lisa Bernhard, Sheryl Pena, Kyoko Gasha)
  • Copyright Holder: REUTERS
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