Current:Home > NewsStock market today: Asian shares slip after S&P 500 slips ahead of Fed interest rate decision-DB Wealth Institute B2 Reviews & Ratings
Stock market today: Asian shares slip after S&P 500 slips ahead of Fed interest rate decision
lotradecoin trading tutorial for beginners View Date:2024-12-25 14:36:12
HONG KONG (AP) — Asian shares were mostly lower on Monday ahead of a Federal Reserve decision this week on interest rates.
U.S. futures gained while oil prices fell more than $1 a barrel. as concerns over an escalation of the Israel-Hamas war added to uncertainty over supplies.
The Israeli military’s ground forces conducted incursions into Gaza over the weekend and Prime Minister Netanyahu warned of a “long and difficult” war.
A mixed set of economic reports Friday didn’t appear to change Wall Street’s expectations that the Federal Reserve will keep its benchmark rate of above 5.25% unchanged at a meeting Wednesday.
A report showed that the Fed’s preferred measure of inflation remained high last month, but within economists’ expectations. Spending by U.S. consumers was stronger than expected, even though growth in their incomes fell short of forecasts.
U.S. consumer expectations for inflation in the coming year are rising, up to 4.2% from 3.2% last month. That’s particularly concerning for the Fed, which fears such expectations could lead to a vicious cycle that worsens high inflation.
In Asian markets Monday, Tokyo’s Nikkei 225 index lost 1.3% to 30,591.03. There is speculation, given recent signs of sustained inflation, that the Bank of Japan may make adjustments to its monetary policy in a meeting that ends on Tuesday.
Over the weekend, more than 30 companies listed in China revealed intentions to conduct share buybacks and purchases after China announced a slew of measures aimed at stabilizing falling stock prices. The Hang Seng in Hong Kong fell 0.3% to 17,349.36 and the Shanghai Composite index rose 0.2% at 3,022.90.
Nominal retail sales in Australia rose 0.9% in September from August, data from the Australian Bureau of Statistics showed on Monday. This is the fastest pace in eight months, suggesting some resilience in consumer spending. Australia’s S&P/ASX 200 slipped 0.6% to 6,787.90.
South Korea’s Kospi added 0.4% to 2,311.55. Taiwan’s Taiex edged up 0.1% and the SET in Bangkok also was up 0.1%.
Stocks stumbled Friday on Wall Street. The S&P 500 fell 0.5%, 10% below the peak it reached in July.
That put benchmark index into what’s called a “correction.” Stocks have fallen the past three months as investors face the reality of higher interest rates, with Federal Reserve officials talking about keeping rates “higher for longer.”
The Dow Jones Industrial Average fell 1.1% and the Russell 2000 index of smaller company stocks slipped 1.2%, closing at its lowest level in about four years.
The Nasdaq was the bright spot in the market, gaining ground on the strength of several big technology and communications companies that reported solid earnings. The index rose 0.4%.
Amazon rose 6.8% following its profit report. Both its profit and revenue for the summer were better than expected. As one of the most massive companies on Wall Street, Amazon’s stock movements carry huge weight on the S&P 500 and other indexes.
It’s one of the “Magnificent Seven” Big Tech stocks responsible for much of the market’s climb early this year. But those huge gains also meant big expectations: Alphabet, Meta and Tesla all fell sharply following their latest reports.
Intel, which is outside the Magnificent Seven, was also helping to support the market. It rose 9.3% after reporting much stronger profit for the summer than analysts expected.
Ford stumbled 12.2% after reporting disappointing earnings and revenue a day after it reached a tentative contract agreement with the United Auto Workers union.
The yield on the 10-year Treasury has been hovering at levels not seen since 2007. Early Monday it was at 4.87%. Its rise from less than 3.50% in the spring to more than 5% earlier last week has sent prices tumbling for older bonds already trading in the market.
The 10-year yield has been catching up the Fed’s main overnight interest rate as the economy remains remarkably solid and as worries rise about how much debt the U.S. government is taking on to pay for its spending.
A barrel of benchmark U.S. oil fell $1.32 to $84.22 a barrel in electronic trading on the New York Mercantile Exchange. It slipped 99 cents to settle at $84.54 on Friday. Brent crude, the international standard, slipped $1.12 to $88.08 per barrel.
In currency trading, the U.S. dollar fell to 149.56 Japanese yen from 149.59 yen. The euro cost $1.0563, falling from $1.0567 late Friday.
veryGood! (47)
Related
- A slain teacher loved attending summer camp. His mom is working to give kids the same opportunity
- BottleRock Napa Valley 2024 lineup: Stevie Nicks, Ed Sheeran among headliners
- NFL mock draft 2024: J.J. McCarthy among four QBs to be first-round picks
- 'Tragic accident': Community mourns 6-year-old girl fatally struck by vehicle in driveway
- Gena Rowlands, acting powerhouse and star of movies by her director-husband, John Cassavetes, dies
- Grizzlies star Ja Morant will have shoulder surgery, miss remainder of season
- Franz Beckenbauer, who won the World Cup both as player and coach for Germany, has died at 78
- In Israel, Blinken looks to planning for post-war Gaza as bombardment, fighting continue to rage
- How a small group of nuns in rural Kansas vex big companies with their investment activism
- 49ers at Dolphins, Bills at Ravens headline unveiled 2024 NFL schedule of opponents
Ranking
- Rob Schneider seeks forgiveness from daughter Elle King after 'fat camp' claims
- ITZY is showing who they were 'BORN TO BE': Members on new album, solo tracks and evolving.
- German opposition figure launches a new party that may have potential against the far-right
- Anthony Fauci begins 2 days of interviews with House panel on COVID-19
- Hurricane Ernesto aims for Bermuda after leaving many in Puerto Rico without power or water
- Central US walloped by blizzard conditions, closing highways, schools and government offices
- CES 2024 updates: Most interesting news and gadgets from tech’s big show
- Trump says he'll attend appeals court arguments over immunity in 2020 election case
Recommendation
-
'Business done right': Why the WWE-TNA partnership has been a success
-
Singer, actress Halle Bailey announces birth of son: Welcome to the world my halo
-
As Bosnian Serbs mark controversial national day, US warns celebration amounts to ‘criminal offense’
-
Trump to return to federal court as judges hear arguments on whether he is immune from prosecution
-
Don't be fooled by the name and packaging: Fruit snacks are rarely good for you. Here's why.
-
4 people charged over alleged plot to smuggle hundreds of Australian native reptiles to Hong Kong
-
Trump says he'll attend appeals court arguments over immunity in 2020 election case
-
MSNBC’s Mehdi Hasan quits rather than accept demotion at news network