(Bloomberg) — Shares in Europe declined on Monday along with US equity futures as a note of caution crept in at the start of a week marked by interest-rate decisions and big-name company earnings on both sides of the Atlantic.
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The Stoxx Europe 600 index dropped about 0.4%, taking some of the luster off what was shaping to be the biggest January gain on record. Technology stocks led the decline as Prosus NV slumped more than 5% after a rout in Hong Kong’s tech sector. Royal Philips NV climbed after the medical-equipment maker announced a new round of job cuts.
European bonds fell, with yields on benchmark German securities up six basis points, after Spanish inflation unexpectedly quickened, prompting traders to boost bets on how high the the European Central Bank will raise interest rates. The euro gained.
Contracts on the S&P 500 and Nasdaq 100 declined following the advance on Wall Street Friday as traders brushed off disappointing outlooks from some of the…
2023-01-30 03:50:43 Stocks Fall With Eyes on Rate Hikes; Bonds Decline: Markets Wrap
Link from finance.yahoo.com The markets ended their trading session with a downswing today, with stocks and bonds both falling amid ongoing speculation about potential interest rate increases. The Dow Jones Industrial Average closed down nearly 250 points, or 0.9%, at 26,064. The S&P 500 slid 0.8% to 2,881, while the Nasdaq Composite dropped 0.5% to 8,012.
The losses come as investors digest the latest economic data, particularly inflation figures, which could influence the Federal Reserve’s decision on raising interest rates. The central bank has signaled a willingness to raise rates this year if inflation reaches the 2% target.
Bond prices slid as speculation around the possibility of higher rates increased. The benchmark 10-year Treasury note yield rose to 1.65%, hitting its highest level since April. Bond prices move inversely to yields.
In addition, stocks also drew on mixed earnings results from major companies, with Microsoft and Apple falling 3.2% and 0.8%, respectively. Meanwhile, Amazon edged up 0.1%, despite posting mixed results.
The tech sector was the biggest laggard of the day, falling more than 2%, dragged down by steep losses in chipmakers. The Philadelphia Semiconductor index dropped 4.4%, the steepest slide since August.
Overall, despite today’s losses, the three major indexes remain up for the year, with the Nasdaq Composite holding onto its gains of 17.7%, while the S&P is up 13.5% and the Dow is up 10.9%.
Looking ahead, investors will be keeping a close watch on the Fed’s decision on interest rates and upcoming earnings reports to gauge the markets’ direction.