Tuesday, 8 October 2024 03:17 WIB | MARKET UPDATE |DOW JONESS & P 500Indeks NasdaqSahamASWallstreet

U.S. stock indexes closed lower on Monday while Treasury yields rose, as traders tamped down bets for Federal Reserve interest-rate easing and worried about the Middle East conflict’s impact on oil prices.

While waiting for quarterly earnings season and fresh economic data, investors also braced for another big hurricane, Milton, which is expected to hit the United States this week. Relief efforts are under way after Helene, a Category-4 hurricane that killed more than 200 people across six states.

After Friday’s stronger-than-expected jobs report, traders pulled back from bets for a 50-basis-point rate cut in November. They were pricing in an 86% chance of a 25-basis-point cut and a roughly 14% chance the central bank would not cut rates at all, according to the CME’s FedWatch tool.

The change in rate-cut expectations caused U.S. Treasury yields to rally, with the yield on benchmark 10-year notes exceeding 4% for the first time in two months.

Besides next month’s Fed meeting, investors are waiting for the Consumer Price Index inflation reading for September and the kickoff of third-quarter earnings season with reports from banks, both due this week.

According to preliminary data, the S&P 500 (.SPX), lost 54.90 points, or 0.95%, to end at 5,696.17 points, while the Nasdaq Composite (.IXIC), lost 213.94 points, or 1.18%, to 17,924.49. The Dow Jones Industrial Average (.DJI), fell 398.71 points, or 0.95%, to 41,951.31.

Source : Reuters