S&P 500 (SPY) Report – 10/03/23
Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
Stock futures took a downturn this morning as traders monitor a significant rise in Treasury yields, which soared to a peak not witnessed since 2007. The trigger behind this surge is closely tied to market speculation around a prolonged stringent stance by the Federal Reserve. The Dow Jones Industrial Average futures dropped 167 points, marking a 0.5% decrease. Concurrently, the S&P 500 futures experienced a 0.7% drop, while the Nasdaq 100 futures declined by 0.8%. The 10-year Treasury yield notably escalated to 4.735%, marking its highest position since August 15, 2007.
The financial market is on edge as investors worry about the ramifications of higher interest rates, orchestrated by a tighter Federal Reserve policy, possibly steering the economy towards a recession. This anxiety has propelled Treasury yields to heights unseen in over a decade. Amidst this backdrop, the stock market is striving to recover, albeit cautiously. As noted by Adam Crisafulli of Vital Knowledge, investors are showing restraint, preferring to wait for a more stable market climate before re-engaging, even if it means missing out on a potential 2-4% advance.
Looking ahead, the market is somewhat hopeful yet cautious about the upcoming earnings season. Richard Saperstein, Chief Investment Officer at Treasury Partners, expressed concerns that market expectations might be overly optimistic for 2023 and 2024. The primary worry stems from how significantly companies might be impacted by the economic slowdown triggered by higher interest rates—a risk Saperstein believes the market is currently overlooking. Meanwhile, on Tuesday morning, investors are poised to scrutinize the Job Openings and Labor Turnover Survey for August, anticipating around 8.8 million job openings as per economists polled by Dow Jones.
Tuesday Economic Events:
Redbook Sales 8:55am ET
JOLTS 10:00am ET – High Volatility Expected
API Crude Oil Data 4:30pm ET
Fed Speaker Scheduled:
Raphael Bostic 8:00am ET
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