We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stock markets closed mixed on Wednesday after two days of mayhem. Fed Chairman’s interest rate cut assurance bolstered market participants sentiments to some extent. Meanwhile, investors remained concerned following mixed economic data. The S&P 500 and the Nasdaq Composite ended in positive territory while the Dow finished in negative zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.1% to close at 39,127.14 after a choppy session. Notably, 16 components of the 30-stock index ended in negative territory and 14 ended in positive zone. The blue-chip index was up nearly 136 points at its intraday high and down 153 points at its intraday low. The index posted negative closing in the first three trading day of second-quarter 2024.
The tech-heavy Nasdaq Composite finished at 16,277.46, gaining 0.2% due to strong performance by technology bigwigs. The major gainer of the tech-laden index was Micron Technology Inc. (MU - Free Report) . The stock price of the semiconductor behemoth climbed 4.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 rose 0.1% to finish at 5,211.49. seven out of 11 broad sectors of the broad-market index ended in positive territory, while four in negative zone. The Energy Select Sector SPDR (XLE), the Materials Select Sector SPDR (XLB) and the Communication Services Select Sector SPDR (XLC) advanced 0.7%, 0.6% and 0.8%, respectively. On the other hand, the Consumer Staples Select Sector SPDR (XLP) fell 1.1%.
The fear-gauge CBOE Volatility Index (VIX) was down 1.9% to 14.33. A total of 11.03 billion shares were traded on Wednesday, lower than the last 20-session average of 11.76 billion. Advancers outnumbered decliners on the NYSE by a 1.66-to-1 ratio. On Nasdaq, a 1.25-to-1 ratio favored advancing issues.
Powell Reiterates Rate Cut with Caution
In a speech at Stanford University, Fed Chairman Jerome Powell reiterated his post-FOMC statement in March that the central bank will reduce the benchmark lending rate at some point of time this year. However, he also cautioned that the time of rate cut will depend on upcoming economic data, especially the inflation data.
Powell said, “On inflation, it is too soon to say whether the recent readings represent more than just a bump. We do not expect that it will be appropriate to lower our policy rate until we have greater confidence that inflation is moving sustainably down toward 2%. Given the strength of the economy and progress on inflation so far, we have time to let the incoming data guide our decisions on policy.”
Meanwhile, on Apr 3, Atlanta Fed President Raphael Bostic expressed concerns about slow pace of decline in inflation rate and anticipated only one rate cut of 25 basis points this year that to on fourth-quarter. Recently, two key Fed officials - Governor Christopher Waller and Atlanta President Raphael Bostic - have said that they will prefer less than three rate cuts of 25 basis points each in 2024.
On Apr 1, Regional Fed Presidents Mary Daly of San Francisco and Loretta Mester of Cleveland both said they anticipate rate cuts this year. However, they do not expect monetary easing policies to be implemented anytime soon.
Economic Data
Automatic Data Processing Inc. (ADP - Free Report) reported that private payrolls increased to 184,000 in March from upwardly revised 155,000 in February. The metric for March was the highest since July 2023. Wages for workers who stayed in their jobs increased 5.1% in March from a year ago, the same rate as February. Those switching jobs saw gains of 10% in March, also higher than the previous month.
The Institute of Supply Management reported that services sector PMI (purchasing managers’ Index) came in at 51.4%, missing the consensus estimate of 52.7%. The metric for February was 52.6%. Notably, any reading above 50% indicates expansions of services activities. March represents 15th consecutive months of expansion for services sector. The new orders Index came in at 54.4% in march, marking 15th consecutive months of expansion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Apr 4, 2024
U.S. stock markets closed mixed on Wednesday after two days of mayhem. Fed Chairman’s interest rate cut assurance bolstered market participants sentiments to some extent. Meanwhile, investors remained concerned following mixed economic data. The S&P 500 and the Nasdaq Composite ended in positive territory while the Dow finished in negative zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.1% to close at 39,127.14 after a choppy session. Notably, 16 components of the 30-stock index ended in negative territory and 14 ended in positive zone. The blue-chip index was up nearly 136 points at its intraday high and down 153 points at its intraday low. The index posted negative closing in the first three trading day of second-quarter 2024.
The tech-heavy Nasdaq Composite finished at 16,277.46, gaining 0.2% due to strong performance by technology bigwigs. The major gainer of the tech-laden index was Micron Technology Inc. (MU - Free Report) . The stock price of the semiconductor behemoth climbed 4.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 rose 0.1% to finish at 5,211.49. seven out of 11 broad sectors of the broad-market index ended in positive territory, while four in negative zone. The Energy Select Sector SPDR (XLE), the Materials Select Sector SPDR (XLB) and the Communication Services Select Sector SPDR (XLC) advanced 0.7%, 0.6% and 0.8%, respectively. On the other hand, the Consumer Staples Select Sector SPDR (XLP) fell 1.1%.
The fear-gauge CBOE Volatility Index (VIX) was down 1.9% to 14.33. A total of 11.03 billion shares were traded on Wednesday, lower than the last 20-session average of 11.76 billion. Advancers outnumbered decliners on the NYSE by a 1.66-to-1 ratio. On Nasdaq, a 1.25-to-1 ratio favored advancing issues.
Powell Reiterates Rate Cut with Caution
In a speech at Stanford University, Fed Chairman Jerome Powell reiterated his post-FOMC statement in March that the central bank will reduce the benchmark lending rate at some point of time this year. However, he also cautioned that the time of rate cut will depend on upcoming economic data, especially the inflation data.
Powell said, “On inflation, it is too soon to say whether the recent readings represent more than just a bump. We do not expect that it will be appropriate to lower our policy rate until we have greater confidence that inflation is moving sustainably down toward 2%. Given the strength of the economy and progress on inflation so far, we have time to let the incoming data guide our decisions on policy.”
Meanwhile, on Apr 3, Atlanta Fed President Raphael Bostic expressed concerns about slow pace of decline in inflation rate and anticipated only one rate cut of 25 basis points this year that to on fourth-quarter. Recently, two key Fed officials - Governor Christopher Waller and Atlanta President Raphael Bostic - have said that they will prefer less than three rate cuts of 25 basis points each in 2024.
On Apr 1, Regional Fed Presidents Mary Daly of San Francisco and Loretta Mester of Cleveland both said they anticipate rate cuts this year. However, they do not expect monetary easing policies to be implemented anytime soon.
Economic Data
Automatic Data Processing Inc. (ADP - Free Report) reported that private payrolls increased to 184,000 in March from upwardly revised 155,000 in February. The metric for March was the highest since July 2023. Wages for workers who stayed in their jobs increased 5.1% in March from a year ago, the same rate as February. Those switching jobs saw gains of 10% in March, also higher than the previous month.
The Institute of Supply Management reported that services sector PMI (purchasing managers’ Index) came in at 51.4%, missing the consensus estimate of 52.7%. The metric for February was 52.6%. Notably, any reading above 50% indicates expansions of services activities. March represents 15th consecutive months of expansion for services sector. The new orders Index came in at 54.4% in march, marking 15th consecutive months of expansion.