Stock market today: Indexes extend gains as traders eye Fed speakers for rate clues
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- Stocks rose modestly Tuesday morning, extending the market rebound.
- Markets started were revived last week as the April jobs report renewed hopes of rate cuts.
- Investors will tune in to Fed speakers this week for further clues about Fed policy.
US stocks ticked higher Tuesday morning, with markets eyeing commentary from Federal Reserve officials to extend upside momentum.
Morning gains stretched the stock rally into its fourth day, a move up first sparked by Friday's jobs report. Though weaker than expected, the labor data brought boosted hopes for rate cuts.
"The Average Hourly Earnings data reduced fears of inflation showing up in wages, while the increase in the Unemployment Rate, and the disappointing payroll number provide some evidence of a slowdown in the jobs market," David Morrison, senior market analyst at Trade Nation, wrote Tuesday. "That is good news, as it bolstered Powell's statement that the Fed won't be hiking."
Now, futures markets are again starting to price in the odds of two 25-basis point interest cuts this year. A lineup of Fed speakers this week could potentially deepen this notion or, otherwise signal that markets are turning too optimistic.
Minneapolis Fed President Neel Kashkari will speak on Tuesday. Following him are Fed Governor Lisa Cook and Chicago President Austan Goolsbee on Wednesday and Friday.
Meanwhile, earnings data continues to flow in and has helped keep indices steady with profit-beating reports among a majority of S&P 500 firms. Last week witnessed a handful of large-cap tech companies offer solid growth and strong outlooks.
Here's where US indexes stood at the 9:30 a.m. opening bell on Tuesday:
- S&P 500: 5,192.59, up 0.23%
- Dow Jones Industrial Average: 38,903.98, up 0.13% (+50.32 points)
- Nasdaq composite: 16,370.16, up 0.11%
Here's what else happened today:
- Disney stock is sliding after revenue and streaming misses.
- There are 3 reasons bitcoin could still hit $150,000 by next year, Bernstein outlines.
- Confusing macro data should prompt investors to pile into defensive sectors.
- The US will witness a 30% market drop from a year-end recession, Gary Shilling says.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil slumped 0.40% to $78.26 a barrel. Brent crude, the international benchmark, fell 0.50% to $82.93 a barrel.
- Gold slipped by 0.32% to $2,315.84 per ounce.
- The 10-year Treasury yield edged lower four basis points to 4.449%.
- Bitcoin was about flat at $63,603.