[Mercato USA]Stock rebound, S&P 500 sees low since July – $ 143 average – Bloomberg

The US stock market fell on the 15th. A series of conflicting economic data released today left little change in the market view of next week’s Federal Open Market Committee (FOMC) meeting. The dollar / yen traded in the mid-range of 143 yen.

The S&P 500 Index fell 1.1% to 3,901.35, the lowest since July 18. The Dow Jones Industrial Average fell $ 173.27, or 0.6%, to $ 30,961.82. The Nasdaq Composite Index fell 1.4%. Growth stocks were sold and the Nasdaq 100 index, which is focused on technology stocks, fell 1.7%, which is lower than the major indices.

Among the individual titles, software maker Adobe has plummeted. The company agreed to acquire US software design startup Figma for approximately $ 20 billion.

“The market is waiting for the future,” said Fiona Cincotta, senior analyst at City Index. “The sharp reversal in stocks on Wednesday was driven by a shift in US monetary policy outlook. Until we listen to the Fed’s point of view, we won’t see a clear direction in the market,” she said.

Traders expect the current Federal Funds (FF) rate target of 2.25% to 2.5% to peak at nearly 4.5% next year. Ray Dalio, founder of Bridgewater Associates, believes that a rate hike at this level could lead to a nearly 20% drop in stock prices.

US Treasury yields increased over a wide range of maturities. Particularly noticeable was the rise in short-term interest rates, with the two-year, monetary-policy-sensitive bond yield temporarily rising 8 basis points (bp = 0.01%) to 3.87%. highest level since 2007. The reversal in long- and short-term interest rates is progressing.

At 4:14 pm New York time, two-year yields increased 7 basis points to 3.85%, 10-year yields increased 4 basis points to 3.44%, and 30-year yields increased by 1 basis point at 3.47%.

For the first time in nearly 14 years, US mortgage rates have risen more than 6%. Fixed 30-year rates averaged 6.02%, up from 5.89% the week before, Freddie Mac said Monday. more than 6%Since November 2008。

In the foreign exchange market, both the dollar and the yen are showing a lack of direction. Investors are gearing up for next week’s round of monetary policy meetings between Japan and the US. Strategists see the sharp rate hike expected by the market at the Federal Open Market Committee (FOMC) meeting as support for the dollar.

On the other hand, some traders claim that the lack of activity the day after the BOJ conducted a “rate check” prompted the funds and others to raise their dollar buying positions again. A rate check is a step before the actual intervention, giving traders a kind of warning to avoid one-sided trading.

“The market is looking for signs that the BOJ will prove itself with stocks, not just words,” said Nick Twydale, FP Markets CEO for Asia Pacific. At this rate, he said, “I wouldn’t be surprised if the dollar / yen exchange rate hits 145 yen again in the next few days.”

The Bloomberg Dollar Spot Index, which tracks movements in the dollar against the 10 major currencies, rose 0.2%. The dollar rose 0.3% against the yen to 143.46 yen. The euro was up 0.2% against the dollar to $ 0.9997 per euro.

New York crude oil futures fell sharply. The US Department of Energy says no limit price has been set for the Strategic Petroleum Reserve (SPR) replenishment plan.explanationHowever, the expectation that government purchases will support prices has diminished as China will allow domestic refineries to expand exportsmedical examinationA person familiar with the matter revealed that they are doing so, raising questions about how much demand has dropped due to blockages to prevent the spread of the novel coronavirus.

New York Mercantile Exchange (NYMEX) West Texas Intermediate (WTI) futures for the October contract closed at $ 85.10 a barrel, down $ 3.38 (3.8%) from the previous day. The London ICE North Sea Brent contract for November fell from $ 3.26 to $ 90.84.

“The inconsistency of the White House messages on the SPR is driving the market up and down,” said Phil Flynn, senior market analyst at Price Futures Group. “We are now shooting down the observation balloon we raised to see how potential oil purchases would affect the market,” he said.

New York gold futures fell for a third consecutive day. The set of US economic indicators released on the day was mixed, but speculation that a more substantial increase in US interest rates would be decided led to the sale.