Fixed Income Market Overview
Treasury yields rose on Tuesday as investors responded to Federal Reserve Chair Jerome Powell’s comments. The 10-year Treasury yield increased by over 2 basis points to 4.30%, while the 2-year yield edged up to 4.64%. Powell indicated the Fed might ease its restrictive monetary policy but cautioned against doing so too late to avoid harming economic activity and employment. Bond yields have been declining recently, with the 10-year rate dropping nearly 40 basis points since May. Markets anticipate a rate cut in September, with a 77% chance according to CME Group’s FedWatch Tool. Key inflation data, including the consumer price index and producer price index, is expected later this week.
Fed Chair Powell says holding rates high for too long could jeopardize economic growth.
BP shares drop after warning of up to $2 billion impairment.
Singapore state investor Temasek to focus on early adopters of AI in the U.S.; cautious on China.
U.S. oil prices fall as oil infrastructure recovers from Tropical Storm Beryl.
Space station startup Gravitics lands $125 million order from Axiom.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,291.97 | -52.82 | -0.13%↓ |
| NASDAQ | 20,453.02 | 13.48 | 0.07%↑ |
| S&P 500 | 5,576.98 | 4.13 | 0.07%↑ |
| NIKKEI | 41,580.17 | 799.47 | 1.96%↑ |
| HSI | 17,523.23 | -0.83 | 0.00%↓ |
| VIX | 12.51 | 0.14 | 1.13%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.30% | 0.02 |
| US 30-YR | 4.49% | 0.03 |
| US 5-YR | 4.25% | 0.00 |
| JPN 10-YR | 1.08% | -0.01 |
| UK 10-YR | 4.16% | 0.04 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 81.41 | -0.92 | -1.12%↓ |
| NAT GAS | 2.360 | -0.022 | -0.92%↓ |
| GOLD | 2,367.90 | 4.40 | 0.19%↑ |
| SILVER | 31.06 | 0.14 | 0.46%↑ |
| COPPER | 4.578 | -0.041 | -0.88%↓ |
Equity Market Overview
Stock futures showed little movement on Tuesday afternoon after the S&P 500 achieved a new record close. Dow Jones futures dipped by 9 points, while S&P 500 and Nasdaq-100 futures climbed modestly. This follows a mixed session where the Nasdaq Composite and S&P 500 set new records amid Federal Reserve Chair Jerome Powell’s warning that prolonged high rates could hinder economic growth. Powell emphasized that more positive data is needed to confirm inflation is moving towards the 2% target. Key economic data, including the June CPI and PPI readings, are anticipated later in the week, which are seen as crucial for the market and future rate cut expectations.
