The US stocks were able to open in a negative note Friday after Federal Reserve Chairman Jerome Powell on Thursday commented that the economy was strong enough not to “hurry” to further cut interest rates.
Futures for all three key indicators fell as investors processed key inflation and economic data released over the week.
“The economy hasn’t sent a signal that we need to hurry down rates. The strength we see in the economy now gives us the ability to approach our decisions carefully,” Powell said, maintaining a meeting approach for the time being.
For now, post-election rally in the stock market appears to be slowing as investors hedge bets while booking profits at the same time.
On Friday’s pre-market transaction, the SPDR S&P 500 ETF Trust spy 0.53% lower, $590.22 and Invesco QQQ ETF QQQ According to Benzinga Pro data, it fell 0.80% to $504.63.
Queue from the last session:
US stocks closed in red on Thursday, with the technological Nasdaq falling the most.
Crude oil prices are below the $70 mark and were further eased on Friday as demand is slowed down due to fears of China’s slowdown.
The Treasury has been reeled as investors digested Powell’s comments on the economy and consumed rate cuts in the near future.
In terms of economic data, the first US unemployment claims fell 4,000 to 217,000 for the week ending November 9th, compared to a market estimate of 223,000.
US producer prices rose 0.2% throughout the month in October, compared to the revised 0.1% increase in September. This is in line with market expectations.
Most sectors of the S&P 500 were closed in negative notes with consumer discretion, industry and healthcare stocks recording the biggest losses on Thursday.
However, information technology and energy inventory lost on overall market trends and closed sessions.
Insights from Analysts:
Powell’s relatively hawkish tone has investors cautious about the market, analyst Francesco Pesor said.
This could result in a dollar correction. This is about “testing the limits” of Long, Pesol noting, adding that traders should be careful for the time being.
“Powell seemed to focus on the strength of the economy and how it would allow central banks to approach future policy decisions. ”
CME Group’s FedWatch tool reflects the drop in sentiment for another interest rate cut next month, with the odds dropping from 72.2% to 62.1%.
Investors will also be aware of retail sales data scheduled to be released later today.
However, Sonu Barghese, a global macro strategist at the Carson Group, downplayed the fear of inflationary rebounds and said there was a “potential trend” to “keep the lid” in price increases.
In terms of equity, Barghese maintained his bullish outlook.
“Overall, economic strengths clearly outweigh areas of weakness, and opportunities are likely to be more likely than threats.
Reference: How to Train Futures
Future economic data
Here are the key economic updates for Friday:
Import price index. Retail sales data released at 8:30am ET
Focus stock:
Tesla Inc. TSLA Stocks will focus today after reports emerged that President Donald Trump is likely to end his $7,500 tax credit. Tesla shares fell 5.8% on Thursday. Taiwan Semiconductor Manufacturing Co. TSM Stocks rose 0.4% in pre-market trading after the US government confirmed a $6.6 billion subsidy to chip makers under the Chips Act. Domino’s Pizza Inc. DPZ Stocks surged more than 7% in pre-market trading after Warren Buffett-led Berkshire Hathaway acquired a small share in the company. Pfizer Inc. pfeModerna Inc. mRNAand Novavax Inc. nvax Stocks have fallen after Trump appointed Robert F. Kennedy Jr. to head of the Department of Health and Human Services. Palantir Technologies Inc. pltr On November 26th, it was announced that it would switch from the New York Stock Exchange to NASDAQ. BabaSpectrum Brands Holdings, Inc. SPBand RLX Technology Inc. RLX today.
Products, bonds, and global equity markets:
Crude futures fell during the early sessions in New York, falling 1.11% to hover at around $67.94 per barrel.
Treasury bonds rose about 4.43% in 2010.
Most of the major Asian markets were mixed on Friday, but the European market was slightly green in early trading.
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