S&P 500 rebounded from session lows and moved back into the positive territory. Today, traders focused on PMI reports. The reports exceeded analyst expectations but showed that rising prices continued to put pressure on businesses.
Interestingly, Treasury yields moved lower after the release of PMI reports. Bond traders are not ready to bet on a more aggressive Fed. Markets expect that the Fed will raise the interest rate by 25 bps at the next meeting and will not be able to push rates above the 5.00% level in 2023.
3M was the biggest loser in the S&P 500 today as traders reacted to the disappointing earnings report. The company missed analyst estimates and provided disappointing outlook.
Energy stocks have found themselves under pressure as WTI oil pulled back amid profit-taking. Concerns about the strength of global demand for oil have also served as a bearish catalyst for oil and energy stocks today.
The reaction to Microsoft’s report will have a significant impact on NASDAQ dynamics, so traders should be prepared for fast moves.
Dow Jones (US30)
Dow Jones gained ground in today’s trading session as the rebound continued. Dow Jones has underperformed in recent trading sessions, and it looks that traders were ready to bet that it will move closer to recent highs.
For a look at all of today’s economic events, check out our economic calendar.