Nasdaq, S&P, and Dow tick lower ahead of Powell’s address
Traders on Wall Street observed a slight decline in major market averages ahead of Jerome Powell's address, with the Nasdaq, S&P 500, and Dow all down by 0.1%. Despite this, seven of the 11 S&P sectors were positive, led by Energy and Consumer Staples. Treasury yields rose, with the 2-Year at 3.61% and the 10-Year at 3.77%. Economic indicators showed a slight uptick in the Chicago PMI, while the Dallas Fed Manufacturing Survey fell short of expectations. Notably, NIO shares surged 12.3% due to positive sentiment in China, and CVS Health rose 3.4% amid operational improvement discussions.
Traders and investors observe a slight shift lower in Wall Street’s major market averages on Monday, as market participants hope for a strong end to the month in the final trading session of September.
The tech focused Nasdaq Composite (COMP:IND), trades lower by 0.1%. At the same time, the benchmark S&P 500 (SP500) trades in the red by 0.1%, and the blue-chip Dow (DJI) trades down by 0.1%.
From a sector point of view, seven of the 11 S&P segments find themselves trading in positive territory. The two segments that have advanced the most on the day so far have been Energy and Consumer Staples, while Consumer Discretionary has suffered the most.
The Treasury market noticed a move up in yields. The shorter end U.S. 2 Year Treasury yield (US2Y) has advanced 5 basis points to 3.61%. At the same time, the longer end U.S. 10 Year Treasury yield (US10Y) has moved up by 2 basis points to 3.77%. See how other yields trade across the entire yield curve here.
On the economic side, Jerome Powell is set to speak later in the day. "Powell's speech today will likely stick to his FOMC script but it's fair to say that Fedspeak since the meeting has been more amenable to additional 50bps cuts than we'd thought they would be," Deutsche Bank's Jim Reid said.
Furthermore, the September Chicago PMI edged up, but stayed in contraction territory. PMI rose to 46.6 compared to the forecasted 46.1 level.
Also, the Dallas Fed Manufacturing Survey increased to -9.0 in September from -9.7 in August, though falling short of the -4.5 forecasted figure.
As for stocks that are on the move, shares of EV maker NIO (NIO) rallied 12.3% amid growing enthusiasm in China over Beijing's latest stimulus measures.
Moreover, CVS Health (CVS) rose 3.4% following a report that hedge fund Glenview Capital Management is set to meet with top executives to propose operational improvements.