Latest news with #SpartanCapital
CNA
10 hours ago
- Business
- CNA
Stocks choppy as Fed leans hawkish, oil climbs on Mideast uncertainty
NEW YORK :Wall Street stock trading was volatile after the Federal Reserve held interest rates steady on Wednesday, while oil prices edged higher again as investors analyzed the chances that the Israel-Iran air war might lead to supply disruption or any intervention from Washington. The U.S. central bank forecast a slightly slower pace of cutting interest rates, predicting that President Donald Trump's tariffs would stoke inflation. "The Fed is looking at slower economic growth and the vote was unanimous and the fact that rates remain unchanged is no surprise," said Peter Cardillo, chief market economist at Spartan Capital. "They do state that the economy is slowed, but still on solid footing." The Dow Jones Industrial Average was last up 0.08 per cent, the S&P 500 0.09 per cent higher and the Nasdaq Composite advanced 0.19 per cent, having traded briefly higher than those levels after the Fed statement. Geopolitics remained in focus as Iranian Supreme Leader Ayatollah Ali Khamenei rejected Trump's demand for unconditional surrender, and Trump said his patience had run out but did not indicate his next step. Trump declined to say whether he had made any decision on whether to join Israel's bombing campaign against archenemy Iran. "Nobody knows what I'm going to do," he said. U.S. crude oil futures settled 0.4 per cent higher at $75.14 per barrel on the sixth day of the Middle East conflict. Brent rose to $76.74 per barrel, up 0.43 per cent on the day. U.S. TREASURY YIELDS FALL, THEN RISE U.S. Treasury yields fell after the Fed statement before turning slightly higher on the day. The yield on the benchmark U.S. 10-year notes rose 0.6 basis point to 4.397 per cent, from 4.391 per cent late on Tuesday. Treasury yields had slid earlier in the week as investors calculated that geopolitical risks abroad were greater than the chances the U.S. debt pile would become unmanageable. Economic data from earlier in the week had made for a challenging backdrop for the Fed decision. U.S. retail sales fell by a larger-than-expected 0.9 per cent in May, data showed on Tuesday, the biggest drop in four months, while labor market indicators showed weakness. The two-year yield, which is more sensitive to changes in expectations for Fed interest rates, fell 0.7 basis point to 3.944 per cent, from 3.95 per cent late on Tuesday.
Wall Street Journal
06-06-2025
- Business
- Wall Street Journal
Gold Choppy After Jobs Report
0913 ET – Gold futures came under minor pressure following the May jobs report, with the expected slowdown in hiring being less than expected by economists. The continuous contract briefly turned down 0.1% after the report's release, but it has since returned to being up 0.2% in early trading. Precious metals are expected to end the week on a high note, says Peter Cardillo of Spartan Capital Securities in a note. 'Metals are on track to close the week with strong gains, as both gold and silver continue to show a positive upward trend,' Cardillo says. The jobs report showed 139,000 jobs added, more than the consensus estimate of 125,000 jobs. ( 0838 GMT – Gold futures rise, on-track to finish the week higher. Futures are up 0.25% at $3,383.60 a troy ounce. The precious metal has gained on renewed trade tensions, geopolitical risks and a weaker U.S. dollar, BMI analysts say in a note. Earlier in the week, President Trump doubled existing steel and aluminum tariffs to 50%, the Russia-Ukraine war intensified and the dollar slid, improving gold's safe-haven appeal. Gold looks like it has further room to rise, given the U.S. Federal Reserve should eventually cut interest rates again and significant volatility is set to persist as global markets remain on edge, BMI says. Lower interest rates are typically a boon for non-interest bearing bullion. (
Yahoo
02-06-2025
- Business
- Yahoo
Oil Extends Gains on OPEC+, Geopolitical Premium
Oil futures rose after Ukrainian drones attacked inside Russia, and a nuclear deal with Iran remained elusive, but Spartan Capital didn't anticipate a sustained rally, as oversupply continued to be a concern.
CNA
19-05-2025
- Business
- CNA
Treasury yields rise, dollar down amid fiscal concerns after US downgrade
NEW YORK :Longer-dated Treasury yields gained while the dollar broadly eased on Monday amid concerns about the U.S. debt load and a tax-cut bill, following Moody's downgrade of the country's sovereign credit rating. Major U.S. stocks indexes recovered from early losses to end the day flat to slightly higher. Late on Friday, Moody's Investors Service cut the United States' sovereign credit rating from the top triple-A rank, highlighting the country's deteriorating fiscal outlook. U.S. President Donald Trump's sprawling tax-cut bill was approved by a key congressional committee on Sunday. Republicans who control the U.S. House of Representatives will try to push the bill toward passage this week. The 30-year Treasury yield hit an 18-month high before backing off those levels. Investors were concerned that the tax bill will increase the debt load by more than previously expected. The 30-year bond yield gained 3.7 basis points to 4.934 per cent after touching 5.037 per cent, the highest since November 2023. The yield on benchmark U.S. 10-year notes rose 3 basis points to 4.469 per cent, having earlier reached 4.564 per cent, the highest since April 11. "What Moody's did was really more symbolic than anything else. The other agencies had already downgraded the debt," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "Yes, yields are moving higher on the news... But they are moving up for other reasons as well," he added. "In general the (stock) market is not really reacting all that much to the Moody's announcement. Rather, it's a market that's come up and is looking to perhaps consolidate its recent moves." The downgrade from Moody's follows similar moves from Fitch in 2023 and Standard & Poor's in 2011. U.S. Treasury Secretary Scott Bessent used television interviews on Sunday to dismiss the downgrade. Some Federal Reserve officials on Monday commented on U.S. markets following the downgrade. Speaking at a conference held by the Mortgage Bankers Association in New York, New York Fed President John Williams said investors are "clearly" weighing future options. Nevertheless, he said investors "have viewed and continue to view" the U.S. as "a great place to invest, including Treasuries, fixed income assets, so I think that that narrative is still there." The Dow Jones Industrial Average rose 137.33 points, or 0.32 per cent, to 42,792.07, the S&P 500 rose 5.22 points, or 0.09 per cent, to 5,963.60 and the Nasdaq Composite rose 4.36 points, or 0.02 per cent, to 19,215.46. The S&P 500 had registered its fifth straight day of gains on Friday. MSCI's gauge of stocks across the globe rose 1.77 points, or 0.20 per cent, to 882.39. The pan-European STOXX 600 index rose 0.13 per cent, while Europe's broad FTSEurofirst 300 index rose 2.80 points, or 0.13 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan closed lower by 0.5 per cent, with a mixed bag of Chinese data showed a struggling economy. The U.S. dollar declined, hitting a more than one-week low against the safe-haven yen, Swiss franc and euro. Against the Japanese yen, the dollar weakened 0.55 per cent to 144.82. Trump's tariff war has sapped consumer sentiment, and analysts will be scouring earnings from Home Depot and Target this week for an update on spending trends. Home Depot is due to report on Tuesday before the opening bell. Trump said on Saturday that Walmart should "eat the tariffs" after the world's largest retailer said it would have to start raising prices due to the levies. Atlanta Fed President Raphael Bostic told CNBC on Monday the central bank may only be able to cut interest rates by a quarter point over the rest of the year given concerns about rising inflation stoked by higher import taxes. Finance leaders from the Group of Seven democracies will strive for a show of unity when they meet this week on topics other than Trump's tariffs, including economic security, Ukraine and artificial intelligence cooperation. Oil prices ended slightly higher as signs of an impasse in U.S. talks with Iran over its nuclear program offset Moody's downgrade. Brent crude futures rose 13 cents to settle at $65.54 a barrel, while U.S. West Texas Intermediate crude rose 20 cents to settle at $62.69 a barrel.
CNA
19-05-2025
- Business
- CNA
Treasury yields rise, dollar down with focus on tax bill, US downgrade
NEW YORK :Longer-dated Treasury yields gained while the dollar eased and the S&P 500 edged lower on Monday amid concerns about the U.S. debt load and a tax-cut bill, following Moody's downgrade of the country's sovereign credit rating. Late on Friday, Moody's Investors Service cut the United States' sovereign credit rating from the top triple-A rank, highlighting the country's deteriorating fiscal outlook. U.S. President Donald Trump's sprawling tax-cut bill was approved by a key congressional committee on Sunday. Republicans who control the U.S. House of Representatives will try to push the bill toward passage this week. The 30-year Treasury yield hit an 18-month high, with investors concerned that the tax bill will increase the debt load by more than previously expected. The 30-year bond yield touched 5.037 per cent, the highest since November 2023. "What Moody's did was really more symbolic than anything else. The other agencies had already downgraded the debt," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "Yes, yields are moving higher on the news, and could spike a bit higher. But they are moving up for other reasons as well," he added. "In general the (stock) market is not really reacting all that much to the Moody's announcement. Rather, it's a market that's come up and is looking to perhaps consolidate its recent moves." The downgrade from Moody's follows similar moves from Fitch in 2023 and Standard & Poor's in 2011. U.S. Treasury Secretary Scott Bessent used television interviews on Sunday to dismiss the downgrade, while warning trade partners they would get maximum tariffs if they did not offer deals in "good faith." Bessent heads to a Group of Seven meeting this week for more talks. The Dow Jones Industrial Average rose 50.72 points, or 0.12 per cent, to 42,705.46, the S&P 500 fell 10.08 points, or 0.17 per cent, to 5,948.43 and the Nasdaq Composite dropped 54.18 points, or 0.28 per cent, to 19,157.69. The S&P 500 had registered its fifth straight day of gains on Friday. MSCI's gauge of stocks across the globe rose 0.13 points, or 0.01 per cent, to 880.75. The pan-European STOXX 600 index rose 0.13 per cent, while Europe's broad FTSEurofirst 300 index rose 2.80 points, or 0.13 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan closed lower by 0.5 per cent. A mixed bag of Chinese data showed a struggling economy. Trump's tariff war has sapped consumer sentiment, and analysts will be scouring earnings from Home Depot and Target this week for an update on spending trends. Home Depot is due to report on Tuesday before the opening bell. Trump said on Saturday that Walmart should "eat the tariffs" after the world's largest retailer said it would have to start raising prices due to the levies. The dollar weakened broadly, hitting a more than one-week low against the safe-haven yen, Swiss franc and euro. Against the Japanese yen, the dollar was down 0.49 per cent at 144.91. U.S. RATES NOT FALLING SO FAST Atlanta Federal Reserve President Raphael Bostic told CNBC on Monday the central bank may only be able to cut interest rates by a quarter point over the rest of the year given concerns about rising inflation stoked by higher import taxes. In an interview published over the weekend, European Central Bank President Christine Lagarde said the dollar's recent decline reflected a loss of confidence in U.S. policies.
