Not long ago, bad news was good news for stocks as traders thought the Fed would be able to engineer a soft landing, bring inflation down while growth maintained steady.
Now bad news is bad news as the Fed is intent on raising rates to slow growth and kick up unemployment, threatening to push into a hard landing. The FedEx news overnight added to the worries as it is a barometer for the global economy.
A snapshot of the major indices are showing:
- Dow industrial average is down to 394 points or -1.28% at 30566.87
- S&P index is down -52.3 points or -1.34% at 3849.04
- NASDAQ index is down -193.93 points or -1.68% at 11358.43
- Russell 2000 is down -31.46 points or -1.72% 1793.77
Looking at the NASDAQ index, the price gapped below the swing low from September 6 at 11471.50, and trades at the lowest level since July 18 where it bottomed at 11322.84. That is the next target on the downside.
The low price for the year reached 10565.14 back on June 16.
Looking at the US debt market:
- 2 year yield 3.909%, +4.2 basis points
- 5 year yield 3.663%, -0.6 basis points
- 10 year yield 3.463%, +1.0 basis .
- 30 year 3.515, +3.7 basis points
A snapshot of the forex market has the JPY remaining as the strongest of the major currencies. The USD is behind it with gains vs. all the majors with the exception of the USDJPY . The GBP remains the weakest as retail sales disappointed with morning. The CAD is weaker as well as the USDCAD broke to the highest level since November 2020 yesterday (lower CAD), and has continued that run today.