The major market averages are higher on Wednesday, as traders await the preliminary benchmark revision to payroll growth and the minutes from the Federal Reserve’s last meeting.
Early on and the S&P 500 (SP500) was +0.3%, the Nasdaq Composite (COMP:IND) was +0.4%, and the Dow (DJI) was +0.1%.
The 10-year Treasury yield (US10Y) was flat at 3.80%. The 2-year yield (US2Y) was down 4 basis points to 3.94%.
The Bureau of Labor Statistics is expected to issue a preliminary benchmark revision to payroll growth for the 12 months ending March on Wednesday at 10 am ET.
The August Atlanta Fed Business Inflation Expectations (Year-Ahead) came in at +2.2% versus the +2.4% reading in July.
At the same time, the Q3 Quarterly Services Reports for selected services total revenue for Q2 was $5,595.8B, which was an increase of 1.4% from Q1 and up 6.4% from Q2 2023.
Major U.S. stock averages snapped their eight-day winning streak on Tuesday as investors started keying in on fresh indications about the Fed’s thinking on starting rate cuts next month.
“There wasn’t an obvious catalyst, and the S&P 500 was little changed on the day, but it was always going to be tough to sustain such a long run of gains, and several risks are now coming into focus again,” Deutsche Bank’s Henry Allen said.
The economic calendar also includes the FOMC minutes slated to come later in the day.
“The Fed is late in cutting rates, but the relative stability of real borrowing rates means it is not a catastrophic error. The revisions to labor market data do emphasize the risks around Fed Chair Jerome Powell’s ‘data dependency’ approach,” Donovan added.
Source link
