The S&P 500 fell. The blue-chip index ended a four-day earnings streak as tech stocks fell, pulling the Nasdaq Composite down 1.2%. The CBOE, or VIX, rose again above 20 after hitting a two-month low on Tuesday. US crude rose for the first time in three sessions on Wednesday, after falling earlier this week amid signs of progress in Russia-Ukraine talks. Russia has said it has eased military action in the Ukrainian capital and the city of Chernihiv and was ready to schedule a meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky following a draft peace deal. However, as of Wednesday, some media outlets had reported that strikes were still taking place near both major Ukrainian cities. Investors, meanwhile, have been nervous about a flattening US government yield curve, with long-term bond yields falling much sharper than those in the short term as traders bet higher interest rates in the short term and the Federal Reserve in the short term. perspective. the most long-term. The performance of the 10-year benchmark strengthened on Wednesday morning and exceeded 2.4%. The difference, or the difference, between the yields of 2-year and 10-year government bonds – a part of the carefully monitored yield curve, which is usually reversed in the face of the recession – fell to its lowest level since 2019 earlier this week. (Reversed for a few seconds on Tuesday.) “It’s still a pretty accurate indicator [of a recession] “If we go back and look at the history, but I have to give you some reservations,” Kristina Hooper, Invesco’s global market strategy chief, told Yahoo Finance Live on Tuesday. “First of all, it has to be reversed for some time, usually three months, to be a very accurate indicator. Second, it is a longer-term indicator. So usually after reversing the yield curve, it takes about 18 months on average for a recession to occur. And it’s a terrible, awful sell signal, because stocks usually have room to run and run significantly higher after a reversal of a yield curve. “ The story goes on The latest batch of US financial data provided a mixed picture of the state of the economy amid continued high inflation, continuing geopolitical uncertainty and tighter monetary policy by the US Federal Reserve. Jobs hardly changed to 11.3 million in March, well above new hires at 6.7 million, reflecting persistent uncontrolled labor supply shortages. And while the Conference Board’s latest monthly index showed a slight rise in consumer confidence in March, the index remained below last year’s average. In addition, consumer expectations for one-year inflation soared to a record high of 7.9%. “We expect a clear drop in inflation expectations in the second half of the year, but they could easily rise further in the short term,” Ian Shepherdson, chief US economist for Pantheon Macroeconomics, wrote in a note Tuesday. “Research sends mixed messages about the state of the economy, but always remember that feeling is not the same as spending, which is important,” he added. –
4:10 p.m. ET: Shares fall to end 4-day earnings streak: S&P 500 is down 0.6%, Nasdaq is down 1.2%
Here were the main moves in the markets from 4:10 p.m. ET:
S&P 500 (^ GSPC): -29.15 (-0.63%) to 4,602.45 Dow (^ DJI): -65.38 (-0.19%) at 35,228.81 Nasdaq (^ IXIC): retracement.36 (-1.21%) at 14,442.27 Crude (CL = F): + $ 3.14 (+ 3.01%) at $ 107.38 a barrel Gold (GC = F): $ +21.50 (+ 1.12%) at $ 1,939.50 per ounce 10-year Treasury (^ TNX): -4.2 bps for a yield of 2.3580%
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11:04 a.m. ET: RH sounds the alarm bell for consumer demand amid Russia-Ukraine conflict, inflation
RH (RH) – formerly known as Restoration Hardware – issued a warning about the economic outlook as consumers noted rising inflation and market volatility amid the Russia-Ukraine conflict. “As we enter 2022 with the belief that our efforts will continue to elevate and expand the RH brand for the coming years, we also recognize that there are a number of external factors, such as record inflation, rising interest rates and global turmoil, that are creating uncertainty”. RH CEO Gary Friedman said during the call for company profits. “While first-quarter sales and profit margins remain healthy due to the continued easing of our outstanding debts, we experienced a drop in demand in the first quarter that coincided with Russia’s invasion of Ukraine in late February and market instability that followed.” For the first quarter, the home furniture company said it expects its net income to grow between 7% and 8% compared to last year, slowing down revenue growth by 11% for the fourth quarter. The adjusted operating margin is also expected to shrink on a quarterly basis between 23% and 23.5%. Shares of RH fell more than 12% overnight on Wednesday. –
9:30 a.m. ET: Shares open with a fall
This is where the markets traded right after the bell rang on Wednesday morning:
S&P 500 (^ GSPC): -8.17 (-0.18%) at 4,623.43 Dow (^ DJI): -40.27 (-0.1%) at 35,259.91 Nasdaq (^ IXIC): -46.91 (-0.32%) at 14,569.93 Crude (CL = F): + $ 3.53 (+ 3.39%) at $ 107.77 per barrel Gold (GC = F): + $ 10.00 (+ 0.52%) to $ 1,928.00 per ounce 10-year Treasury (^ TNX): +2.8 bps for 2.428% yield
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8:31 a.m. ET: 4 quarter GDP revised to 6.9% annual interest rate, personal consumption to 2.5%
The US economy grew at a slightly slower pace than previously reported in the last months of 2021, based on the Office of Economic Analysis (BEA) final review of fourth-quarter gross domestic product (GDP). US GDP grew by 6.9% year-on-year in the last three months of 2021, according to the BEA on Wednesday. Previously, GDP growth had been reported at 7.0%. The downward revision of GDP was made as the BEA cut its personal consumption measure to 2.5% in the fourth quarter, significantly lower than the 3.1% previously published. Consumer spending accounts for about two-thirds of U.S. economic activity. However, the lower revision was offset in part by the upward revision of private equity investment, which also contributed positively to GDP. –
8:16 a.m. ET: Private payroll rose 455,000 in March, slightly exceeding estimates: ADP
US private-sector employers returned slightly more jobs than expected in March as the economy faced persistent labor shortages and widespread job vacancies. Private sector wages rose by 455,000 last month, the ADP said in its latest report Wednesday. Consensus economists were looking for 450,000 jobs to return, according to Bloomberg. In February, employers returned 486,000 payrolls, based on ADP’s revised monthly printout. The ADP report comes two days before the Labor Department’s “official” monthly job report for March, which is also expected to show about half a million payrolls returned last month. Although the ADP report tended to be an incomplete indicator of the final payroll figure in the Government Jobs Report, it has often suggested at least directional underlying job growth trends. –
7:30 a.m. ET: Futures shares fall after S&P 500 hits four consecutive days of gains
This is where the markets traded on Wednesday morning:
Futures contracts S&P 500 (ES = F): -10.5 points (-0.23%) at 4,615.00 Dow futures (YM = F): -77 points (-0.22%) at 35,113.00 Nasdaq Futures (NQ = F): -50.25 points (-0.33%) at 15,187.50 Crude (CL = F): + $ 2.79 (+ 2.68%) at $ 107.03 per barrel Gold (GC = F): + $ 10.60 (+ 0.55%) at $ 1,928.60 per ounce 10-year Treasury (^ TNX): +1.3 bps for 2.413% yield
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7:20 a.m. ET: Mortgage applications are declining for the third consecutive week as mortgage rates rise further in the last 11 years
U.S. mortgage applications fell for the third week in a row last week, with refinancing under particular pressure as mortgage rates soared to a maximum of more than a decade. The weekly index of the Mortgage Bankers Association (MBA) showed a decrease of 6.8% in the volume of applications for the week ended March 25. This was followed by a fall of 8.1% for the previous period and coincided with an increase in the 30-year fixed-rate mortgage loan to 4.8%, from 4.5% previously. This marked the largest weekly increase since 2011 to bring interest rates to their highest level since the end of 2018. Refinancing decreased by 15% compared to the previous week and fell by 60% compared to the same period last year. On an unadjusted basis, markets were still up 1% from each week, but fell 10% compared to the same week last year. “Mortgage rates jumped to a three-year high last week as investors continue to assess the impact of a more restrictive monetary policy by the US Federal Reserve.” “It is not surprising that the volume of refinancing applications has dropped further, as fewer borrowers are motivated to apply at rates significantly higher than a year ago,” said Mike Fratantoni, senior MBA vice president and chief economist. Press. –
6:12 p.m. ET Tuesday: Futures open slightly lower
Here are the futures contracts of the most important stock indices opened on Tuesday afternoon:
S&P 500 Futures (ES = F): -4.75 points (-0.1%) at 4,620.75 Dow futures (YM = F): -24 points (-0.07%) at 35,166.00 Nasdaq Futures (NQ = F): -15.5 points (-0.1%) at 15,222.25
NEW YORK, NY – MARCH 28: Traders work on the floor of the New York Stock Exchange (NYSE) on March 28, 2022 in New York City. After a positive week for the shares, the Dow Industrial Average fell more than 100 points in the morning trading. (Photo by Spencer Platt / Getty Images) – Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter. Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard and LinkedIn
