(Bloomberg) — Stocks hovered below this week’s record levels as bets on the Federal Reserve’s policy easing prompted investors to exit riskier assets.
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U.S. futures contracts were little changed after European benchmark indexes fell after Wall Street pulled back from the previous session’s all-time highs. The dollar price rose slightly, and US bond yields also rose.
Shares of Reddit Inc. soared in pre-market trading after announcing a content partnership with OpenAI. In Europe, luxury goods group Richemont faced backlash after it named Nicolas Boss as chief executive officer in a management shake-up.
Meanwhile, the meme boom took a new turn as both GameStop and AMC Entertainment Holdings erased early gains, putting their stocks on track to extend their $7 billion plunge over the past two days. Ta.
The overall cautious tone on Friday came after policymakers said it could take longer for inflation to reach the 2% target, with expectations for a US interest rate cut to 1 in 2024. This reflects the fact that the interest rate was reset only for the first time. Investors will be tracking comments from the Fed’s Christopher Waller, Neel Kashkari and Mary Daly later today for further clues on policy direction.
“The market is at a bit of a crossroads right now,” said Stuart Cole, chief macroeconomist at Equity Capital. “With central banks now relying heavily on data, markets will likely adjust their expectations to each new piece of relevant data that emerges.”
Meanwhile, BlackRock’s Rick Rieder said lower interest rates could help curb inflation, arguing that wealthy Americans are making more money investing in bonds than they have in years.
Middle- and upper-income Americans “are benefitting greatly from these rates,” he said. “We are moving to a service-oriented economy and more money is being spent on services, but what is actually happening is that the prices of goods have fallen so much that disposable income is being spent on services. This means that we can now focus on
Bank of America strategists say softer macroeconomic conditions could allow for a comeback in long-term bonds.
Market positioning, monetary policy moves and risks to corporate earnings are setting the stage for a reversal in “non-bond” trading in the second half of the year, the team led by Michael Hartnett said in a note. The 30-year Treasury yield reached its highest level this year in late April.
In China, the development stock index rose nearly 10% following the announcement of deregulation on mortgage loans. Xi also urged local governments to buy unsold homes as part of measures to rescue the country’s troubled real estate market.
Commodities generally rose. Crude oil edged up modestly for the week as competing factors in supply and demand largely offset each other.
Nickel soared as disruptions in New Caledonia, the third-largest producer, raised concerns about supply disruptions. The record tightness in the New York copper market has begun to ease.
This week’s main events:
The main movements in the market are:
stock
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S&P 500 futures were little changed as of 7:47 a.m. New York time.
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Nasdaq 100 futures little changed
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Dow Jones Industrial Average futures little changed
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Stoxx European 600 falls 0.4%
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MSCI World Index falls 0.1%
currency
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Bloomberg Dollar Spot Index rose 0.2%
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The euro fell 0.2% to $1.0844.
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The British pound fell 0.1% to $1.2655.
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The Japanese yen fell 0.3% to 155.88 yen to the dollar.
cryptocurrency
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Bitcoin rises 1.6% to $66,308.32
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Ether rose 3.3% to $3,033.98
bond
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The 10-year Treasury yield rose 2 basis points to 4.40%.
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Germany’s 10-year bond yield rose 5 basis points to 2.51%.
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UK 10-year bond yields rose 4 basis points to 4.12%.
merchandise
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West Texas Intermediate crude oil fell 0.2% to $79.08 a barrel.
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Spot gold rose 0.4% to $2,387.20 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Richard Henderson.
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