Overview
Today's U.S. stock market ended lower as stronger-than-expected economic indicators fueled uncertainty over the Federal Reserve's interest rate cut trajectory, compounded by valuation pressures. The S&P 500 index continued its decline for the third consecutive day, marking its longest losing streak in a month, while the 2-year Treasury yield rose by 6 basis points to 3.66%.
The S&P 500 index recorded its longest losing streak in a month. The second-quarter GDP growth rate was revised to an annualized 3.8%, surpassing preliminary estimates, and initial jobless claims decreased to their lowest level since July, indicating robust employment despite the uncertainties.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News
Within the Federal Reserve, there were differing opinions on monetary policy. The Chicago Fed president expressed concern about inflation from tariffs, opposing preemptive rate cuts, while the Dallas Fed's Logan proposed considering a new benchmark interest rate linked to the Treasury market. All eyes are on the August personal consumption expenditures (PCE) price index, expected to show a slowdown, but still maintaining a high year-on-year rate of 2.9%.
Tomorrow's Economic Indicators
| Time | Event |
|---|---|
| 22:30 | U.S. August PCE Price Index |
| 23:00 | U.S. September Michigan Consumer Sentiment Index |
| 23:00 | U.S. September Michigan Inflation Expectations |
| To be announced | Baker Hughes Total Rig Count |
| 20:20 | Fed Chair Powell Speech |
| To be announced | Fed Governor Bowman Speech |
General Opinion
The market is currently shaken by strong economic indicators and uncertainty regarding the Fed's interest rate policy. Investors are also vigilant about valuation pressures and potential government shutdown risks, with upcoming economic data likely to influence future market direction.
