As Treasury rates decrease, the stock market in the United States is on the upswing.
Stock Market News
Date:-27-09-2023
Treasury yields dropped slightly, as U.S. stocks recovered from the weakness of the previous day.
The S&P 500 was up 0.3% and the NASDAQ Composite was up 0.5% at 9:55 ET (13:55 GMT), while the Dow Jones Industrial Average was up 21 points, or less than 0.1%.
The major Wall Street indices finished Tuesday's trading day substantially lower. The 30-stock Dow Jones Industrial Average, in particular, had its worst day since March, plunging about 400 points, or 1.1%. The tech-heavy Nasdaq Composite lost 1.6%, while the broad-based S&P 500 fell 1.5%.
According to recent data, consumer confidence dropped to a four-month low in September as a result of high prices and recession worries. This was especially true after the Federal Reserve indicated last week that another rate hike was likely.
Treasury yields began to decline. The 10-year Treasury dipped to 4.521% on Tuesday after hitting a peak not seen since 2007.
August orders for durable goods increased by 0.2%. In contrast to the 5.2% fall the month before, they were predicted to have decreased by 0.5% this month.
Government shutdown is getting closer.
Investors have also been closely monitoring Washington, as Congress needs to reach a consensus on at least a short-term funding extension by late Saturday in order to keep the government operating.
A package that would provide the government with short-term funding has been approved by the Senate, but it is expected to encounter strong opposition in the Republican-controlled House of Representatives.
The Senate's bill would provide billions of dollars in domestic disaster relief as well as funding for the government through November 17th.
Simultaneously, the House moved forward with its own agenda, which included a number of spending proposals supported by conservatives and unlikely to find much traction in the Senate, which is controlled by Democrats.
Earlier this week, Moody's issued a warning, stating that a federal government shutdown would negatively impact the nation's credit and would lead to the reduction of the United States' remaining triple "A" rating.
Following quarterly results, Costco declines
In terms of business news, Micron Technology (NASDAQ:MU), Paychex (NASDAQ:PAYX), investment bank Jefferies Financial Group (NYSE:JEF), and semiconductor manufacturer are scheduled to release their earnings.
The focus will also be on Costco (NASDAQ:COST), as the membership club's shares increased 1.4% following the release of better-than-expected quarterly profit and revenue.
Raw recovers from a setback last week.
Following the release of the most recent U.S. inventory data leading into winter, oil prices increased on Wednesday as investors' attention was drawn to supply constraints.
Contrary to predictions for a slight decline, U.S. crude oil stockpiles increased by roughly 1.6 million barrels last week, according to industry statistics from the American Petroleum Institute released on Tuesday.
Nonetheless, concerns about low levels of crude stockpiles at a significant storage hub in Oklahoma persisted, adding to anxieties about a limited supply of crude due to prolonged output restrictions by Russia and Saudi Arabia.
Later on Wednesday, the Energy Information Administration is expected to release the official inventory numbers.
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