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Stock Market Today: S&P500 snaps losing streak on rate cut hopes

Published 04/02/2024, 07:55 PM
Updated 04/03/2024, 04:10 PM
© Reuters.

Investing.com -- The S&P 500 eked out a gain Wednesday, after Federal Reserve chairman Jerome Powell said rate cuts remain on the table for this year, easing some investor fears that the recent strength of the economy would persuade the Fed chief to turn more hawkish.     

At 16:00 ET (20:00 GMT), the S&P 500 added 0.2%, while Nasdaq Composite 0.2% and Dow Jones Industrial Average fell 43 points, or 0.1%.

Powell keeps rate hike hopes alive to cool climb in Treasury yields

Powell said Wednesday most voting Fed participants support lowering interest rates at some point this year, but not until the central bank has greater confidence from incoming data that inflation is on a sustainable move lower. 

In a sign that the Fed chief continues to believe a soft landing for the economy remains intact, Powell said recent data pointing to strong economic growth and hotter inflation haven't materially changed the Fed's outlook, which continues "to be one of solid growth, a strong but rebalancing labor market, and inflation moving down toward 2 percent on a sometimes bumpy path."

Treasury yields were lower, but above the lows of the day, with the yield on the 2-year Treasury 2.7 basis points to 4.674%, while the 10-year Treasury yield 1.1 basis points to 4.352%. 

The remarks arrived hours after data showed the U.S. private sector added far more jobs than expected in March, as private sector employment increased by 184,000 jobs last month, according to payrolls processor ADP.

This was the largest increase in hiring since July, above the 148,000 expected, with job gains strong across industries with the exception of professional services.

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Intel slumps after foundry losses weigh; TSM partly pauses production following Taiwan Earthquake  

Intel (NASDAQ:INTC) fell more than 8% after it disclosed $7 billion in operating losses for its foundry business through 2023, as it lost out more business to Asian rivals including TSMC (NYSE:TSM) and Samsung Electronics Co Ltd (KS:005930). 

The update comes ahead of the chipmaker's earnings slated for Apr. 25, which would likely reflect the headwinds including a loss of server market share to AMD (NASDAQ:AMD).  

"We would note we currently see more headwinds than tailwinds in 1H'24 given a less robust PC market, any apparent standard server pickup potentially muted by share shift towards AMD, continued difficulties for Altera, and a seemingly poor automotive market (weighing on Mobileye)," Wedbush said in a note.

Taiwan Semiconductor Manufacturing (NYSE:TSM) stock rose 1.4% after a severe earthquake on the island prompted the chip maker to halt production at some of its facilities.

Disney 's Igor wins board battle against activist Nelson Peltz; Cal-Maine impresses on earnings stage

Walt Disney Company (NYSE:DIS) fell more than 3% after shareholder voted in favor of retaining a slew of board members fending off a challenge from Nelson Peltz’s hedge fund, Trian Fund Management.

Peltz sought to win two board seats after questioning the board's strategic and capital allocation decisions. 

Cal-Maine Foods (NASDAQ:CALM) stock rose 3.6% after the chicken egg producer reported strong quarterly results, as record sales overcame falling egg prices.

Paramount Global (NASDAQ:PARA) jumped 14% after a report said the media giant has been discussing entering into talks with David Ellison, the founder of the Skydance media company, for a potential deal.

Ford Motor Company (NYSE:F), meanwhile, climbed 3% after reporting that Q1 sales rose 6.8%, led by strong demand for its Maverick hybrid truck. Hybrid sales jumped 42% in the Q1 from a year earlier.  

(Ambar Warrick contributed to this article.)

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Latest comments

One small positive data override all the previous negative datas with the same stale rate cut 🐂💩
We literally had pump Monday to then drop same day and then drop Tuesday... that classes as a losing streak... wow
Yes, it's a short-term streak. I'm not amazed by that, either.
6 rate cuts, then 3, now maybe one in last quarter, amazing how the market sentiment works,
As the expectation for rate cuts has gone down, the stock market's momentum from after the Oct 2023 bottom has also gone down in recent weeks. That's “how the market sentiment works”, as I expected w/out amazement.
Rate cuts hope headline every week for the past 1 year. Next year will be the same. Rate cut hopes... Without a recession won't be 2% inflation.
And there will be a recession
“will be”? Some of your fellow retrumplcans have been telling us that the US has already been in recession for months/years. Is it possible that retrumplicans are liars!
Excellent wordsmithing. SP500 ends up 5+ points or about 1 tenth of 1% and we are celebrating the snap in the losing streak. LOL
Bulls are not celebrating. Bears are triggered and whining about this green 0.1%.
You mean laughing not whining.
I mean whining. Bears like Michel, Stan and Jim are triggered by a +0.1% move To be clear, you're not in this thread; you’re mocking bulls for celebrating. and I agree bulls shouldn’t be celebrating over +01%. But why mock bulls when bulls aren't celebrating?
Higher for longer. Just accept it, stop fighting non stop rising inflation reports along with strong employment.
Or pause for longer.
The S&P and NASDAQ miraculously close green after another criminal round of flagrantly predictable late trade FRAUD, only in the BIGGEST INVESTMENT JOKE IN THE WORLD.
IT'S A CONSPIRACY!!!
Market is only 0.1% green. As I said yesterday: “Some people, more so bears than bulls, are too easily triggered by the trivial.”
market is a political game, no longer related to economics anymore
No, Trump politicized the economy more so than ever.
Oh, so now we're taking this year. It was June yesterday. Uneducated can still have their hopes and buy.
it bounds, educated loser
Still same 55% bets for cuts in June (Fed Rate Monitor Tool)
June 2024 is in this year.
Spewing junk.
And here come savvy investors to load up in the final 30 minutes, just as they do during every loss. Remarkably, there's not a seller to be found during criminally manufactured rally.
“during every loss”!? On March 25, the market was red for day and also dropped in the final 30 minutes.
For goodness sakes end the rate cut narrative...government will never stop spending and this just fuels further inflation. The deception that goes into fooling investors is pure evil
Of course, is Powell going to say anything would cause the biggest investment JOKE in the world to drop from its most grossly overvalued level in history?
He did this last year many times...
Powell said what he has said many times and what the market and I expected. If you expected different, then ...
Bidenomics works, no matter its true or not, the market bounds, the bears die, it loops forever.
Bidenomics certainly work, that's abundantly clear.
xistos Apoi apoi se
Economy is expanding and inflation is still around so what interest rate cuts cuts are we talking about?
Expanding slower (may start contracting, if rates are kept at these levels for too long), inflation is going down to 2% target (we don't want it to become deflation, right?), so yes, rate cuts will be needed soon.
Labor market still strong, inflation creeping back up, yet markets break higher. Manipulation! Mitch isright!
time to sell gold..
Manufacturer data indicates the sector is still expanding. Higher inflation still occurring even with higher interest rates. Yet Wall St. still pushing investors into believing that rate cuts are imminent.
"Higher inflation still occurring...." - what high inflation? mid 3% inflation is basically on par with 50-year inflation average......there is no reason to have Fed keeping the rate above 5% when inflation is hovering around mid 3% for quite a few months now
“even with higher interest rates"? The Fed last raised rate in July 2023. The market rates have been stable for about a year. e.g., the 15-year mortgage rate is now what it was in Oct 2022.
Another loss reversed the day after it occurs. Seems to be a long-term trend. And of course when do savvy investors decide to load up all at once? At 10AM of course. You can set your watch by it. Fraudulent, criminally manipulated, predictable JOKE.
9:45-10am, right, that's where all today's important data was released that drove the markets. Do you know that Economic Calendar exists, Mitch? https://www.investing.com/economic-calendar/
"Seems to be a long-term trend." -- No, not just 'seems'. The long-trend term is, in actuality, up.
“loss reversed” w/ market only up only 0.1% today.
What is going on with the healthcare billing clearinghouse hacking and how is that disrupting the economy mr powell?
Pow Pow Pow Powell face
Intrest rate going up
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