US Markets, Oct 2: Dow Dips and Nasdaq Surges Amidst Rising Treasury Yields
US Markets LIVE, Oct 2, 2023: The US stock market indexes opened slightly lower on Monday, starting the October month on a negative note despite the government shutdown averted.
Dow Jones opened lower by 52 points at the 33455.50 level, while the S&P 500 made a negative opening of 3.53 points at the 4284.52 level. The tech-heavy Nasdaq Composite index made a slightly lower opening of 1.34 points at the 13217.98 level on Monday.
US Markets Live Today
At 12.15 PM EDT, The US stock markets are trading mixed. Dow Jones extended losses and is trading lower by 196 points or 0.58 percent at the 33311.50 level while the S&P 500 is trading lower by 15.27 points or 0.36 percent at 4272.78 levels. The tech-heavy Nasdaq Composite trimmed most of its intraday gains and is trading slightly higher by 47.26 points or 0.36 percent at 13266.58 levels.
US Market News
The US stock markets opened lower on Monday despite the government shutdown being averted, as Treasury yields climbed back to above 4.65%, near their highest level since 2007. The bill allows the government to stay open for 45 days and does not include new financial assistance for Ukraine’s ongoing war with Russia.
The initial reaction to the deal was positive, as US futures were traded in the green territory from Sunday evening to Monday. Dow Jones future was above 200 points at one point in time.
The indices turned red before markets officially opened, as investors feared lawmakers were headed for another shutdown due to short-term agreement and disagreement on government spending levels.
The sentiments turned negative, as investors’ focus has now shifted back to surging interest rates, which are near 15-year highs, and on uncertainty on the November rate hike. Investors will be closely watching for the Federal Reserve’s Chairman Jerome Powell’s speech later in the day to gauge the central bank’s interest-rate path.
The economic data released on Monday showed that ISM Manufacturing PMI came in at 49 in September, higher than the expectation and much above the 46.8 reported in the previous month. The manufacturing actively below 50 marks indicates contraction.
Stocks in News Today
Crypto-related stocks are in the limelight on Monday, Riot Platforms and Marathon Digital gained about 10% and 8% respectively, as Bitcoin prices are at a month high.
The Cryptocurrency exchange Coinbase’s share jumped above 4% after the company said it secured Singapore’s full payment licence to operate in city-state’s individual and institutions.
The share price of residential solar company Sunnova Energy is trading more than 3% lower despite UBS analyst William Grippin’s initiated coverage. Grippin has given a buy rating and suggests shares can gain more than 50%
The utilities sector hit its lowest level since September 2020, stocks are worst performing on Monday. The share price of AES, Eversource, and NextEra Energy, are trading lower by 4% to 8% on Monday
The share price of medical device maker Insulet is trading about 4% higher after Jefferies upgraded the stock from hold to buy, saying investors should take advantage of its recent underperformance and add to their portfolio.
Crude Oil Prices
Oil prices erased early gains on Monday, ahead of comments from the U.S. Federal Reserve chair that could offer insight on future interest rate path. Investors are waiting for a speech as any indication of a rate hike to tame inflation can slow economic growth and reduce oil demand.
Earlier, the crude oil prices started the week on a positive note amid supply concerns with the expectation of no policy change by OPEC+ in its coming weekend meeting. The avoidance of a U.S. government shutdown over the weekend also gave some relief.
The US WTI crude is trading lower by 1.55% at $89.38 per barrel while London-based Brent crude oil is trading lower by 1.21% at $91.08 per barrel.
US Markets at Close
The US stock markets closed mixed on Monday, as 10-year Treasury yields climbed back to 4.68% on rate hike fear, and as Energy and utilities stocks fell sharply. The key US stock market index, Dow Jones ended lower by 0.22 percent while the S&P 500 closed flat to the positive, up by 0.01 percent. The Nasdaq index gained 0.67 percent at the close on Monday.
Also, read Stock Market Today: Dow and Nasdaq Futures Surge as Shutdown Averted
Stock Market Prediction Next Week (2- 6 Oct 2023)
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