US Markets
Friday, October 20th, 2023 1:56 pm EDT
Key Points
- Stock Market Performance: Stock prices decreased on Friday, primarily due to concerns about the recent increase in the 10-year Treasury yield. The Dow Jones Industrial Average lost 9 points, the S&P 500 slipped 0.1%, and the Nasdaq Composite shed 0.2%.
- 10-Year Treasury Yield Milestone: The yield on the 10-year Treasury note surpassed 5% for the first time in 16 years, reaching 5.001%. This was the first time it had reached this level since July 20, 2007, when it had reached as high as 5.029%. At the time of the report, it was trading at 4.929%.
- Company Performance and Market Outlook: SolarEdge’s stock declined by 33% as the company reduced its third-quarter revenue guidance, while Knight-Swift Transportation saw a 13% increase in its stock price after surpassing estimates for the third quarter. The major stock market indices were also on track for weekly losses, with the S&P 500 down 1.3%, the Nasdaq declining 2.1%, and the Dow losing 0.8%. Additionally, Federal Reserve Chair Jerome Powell emphasized concerns about high inflation and the potential need for lower economic growth to address it, while also hinting at market expectations that the central bank might refrain from raising interest rates in November.
Stocks experienced a decline on Friday, with a particular focus on the recent rise in the 10-year Treasury yield. The Dow Jones Industrial Average dropped by 9 points, the S&P 500 slipped 0.1%, and the Nasdaq Composite shed 0.2%. This dip occurred after the benchmark 10-year Treasury yield crossed the 5% mark for the first time in 16 years on the preceding Thursday, reaching 5.001%. It was the first time it had surpassed this level since July 20, 2007, when it had reached as high as 5.029%. At the time of reporting, it was trading at 4.929%.
Additionally, SolarEdge’s stock plummeted by 33% due to the company reducing its third-quarter revenue guidance, while Knight-Swift Transportation saw a 13% rally after surpassing third-quarter estimates on both revenue and earnings.
For the week, major market indices were on track for losses, with the S&P 500 down 1.3%, the Nasdaq declining 2.1%, and the Dow losing 0.8%.
Federal Reserve Chair Jerome Powell, in a statement, noted that inflation remained elevated, suggesting the need for lower economic growth to address this issue. However, he also expressed the belief that interest rates were not currently too high and emphasized the commitment of the Fed to achieving sustainable inflation at 2%. While Powell did not outline a specific path for future interest rates in his remarks, market sentiment indicated a strong likelihood that the central bank would refrain from raising rates in November, with Fed fund futures pricing reflecting a nearly 99% probability of no rate change during the November meeting.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/19/stock-market-today-live-updates.html
