💸Equity market hits new low🔫

The Dow and S&P 500 had a terrible day as they fell to a new low, while the Nasdaq struggled with green in yet another rough trading day. 

Fed President Evan spoke about the concern that the Fed might be hiking rates too fast and swift. He has always been the more dovish member of the Fed. His comments did not significantly impact bond yields as they continue to rise. 

Nonetheless, major indices recovered lost grounds in the later trading hours despite the bond yields spooking the stock market. 

🎯Bond Yields are rising to a new high💰

We are seeing the 10-year bond, which is often a gauge of the longer sentiment on inflation and economic growth, pushing above 3.96%, yet another multi-year high since April 2020. 

It was earlier trying to drop back from its peak only to bounce back higher. Such a move is giving support to the greenback as they trend higher. As discussed, when we see US bonds being more attractive than global bonds, investors tend to buy up the dollar to purchase these bonds. 

Yet, a firmer US dollar has negatively impacted US companies, especially those that derived a large sum of their sales overseas, as they tend to report less in more nominal dollars during earnings. 

🎁US data show resilience in the economy🗽

Durable goods orders fell 0.2% in August, which is still better than the expected 0.5% drop. This adds up with rosy home sales diluting the recession narrative and perhaps giving boldness for the Fed to continue its aggressive interest rate stance as the economy is probably able to withstand more restrictive monetary policy. 

📮What’s on the menu today🔭?

It will be a day full of data and speakers. 

At 8.30 pm, we will welcome the Goods Trade Balance data. 

 This is followed by Pending Home Sales for August, which is likely to see a decline of 1.4% compared to a fall of 1% in the prior period. 

FOMC member Bullard will speak at 10.10 pm, and Uncle Powell will begin his speech at 10.15 pm. 

We are also receiving the Crude Oil Inventories, which will be released at 10.30 pm. We expect a massive fall in this figure from 1.142M to 0.443M.