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Investing.com – U.S. stocks fell at the beginning of the week’s trading, fearing that the latest jobs data will encourage a continuation of the .
Investors are looking forward to the next questionnaire, which is scheduled to be issued on Wednesday, regarding the interest rate, as the data and minutes are expected to move commodity and currency prices for the rest of the month until the Fed meeting early next month.
And following the anticipation of investors’ expectations regarding a 25-point rate hike in the next meeting, the dollar is witnessing strong rises during the past few moments, which is the same thing that exposed gold to sharp losses.
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interest forecast
Nearly 70% of traders expect the Fed to raise interest rates another quarter of a percentage point when it meets in May despite some signs of a slowing economy.
The turmoil in the banking sector last month is expected to lead to a decline in credit conditions, which is another factor that will slow the economy. Major banks are due to start reporting earnings later this week.
Meanwhile, analysts lowered their forecasts, as S&P 500 companies are expected to post a 5.2% contraction in earnings in the first quarter. That compares with expectations for growth of 1.4% as the year begins. Second-quarter earnings are expected to decline by 4%.
bond escape
Speculators fled long-term bonds ahead of Friday’s employment data, raising their bets on benchmark Treasuries by the most in more than a year.
Funds’ net leveraged short positions in 10-year bond futures jumped by about 150,000 contracts in the week ending last Tuesday, the largest shift since March 2022, according to the latest CFTC report. The move pre-empted a drop in Treasury bonds on Friday, after labor market data for March reinforced expectations that the Federal Reserve would raise interest rates by a quarter point in early May.
Speculative money funds are temporarily cautious about betting on long-term bonds, especially after they were caught in the fire of volatility resulting from the recent banking crisis, when they bet on higher interest rates in papers with shorter maturities. Speculators have now bought back the borrowed short-term bonds (to cover their open short positions), according to data from Citigroup.
The return on the 10-year term during these trading moments, today, Monday, reached 3.424%, up by 1.22%.
While the return for two years reached levels of 4.0035%, up by 0.79%.
Indicators at the time of writing
The industrial index fell 0.1% to 33,465 points.
It fell by 0.55%, at 4083 points.
While the compound fell 1% to 11977 points.
Markets at the time of writing
It fell 1.3% to $2,000.
And it fell by 1.15% at 1985 dollars an ounce.
While it rose by 0.75%, to score 102.47 points.
Crude futures fell at 84.5 a barrel, or 0.7%.
US West Texas Intermediate crude also fell, at $80.1 a barrel, by 0.7%.
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