Sep 29, 2022 3:30 AM CDT
VOT Research Desk

Key Insights and Analysis

The gains made yesterday have been erased by Morning Markets’ December S&P 500 futures (ESZ22), which are trending lower by 1.15 percent this morning.

Following the Bank of England’s emergency bond-buying program, which resulted in a decrease in U.S. Treasury yields, risk appetite returned during the regular session, causing three major US benchmark indices to surge sharply.

Three major U.S. stock indexes were fueled by gains in the Oil & Gas, Consumer Services, and Basic Materials sectors.

The Bank of England stated that it would purchase long-dated government bonds daily for up to 5 billion pounds up until October 14.It spent about a billion pounds on Wednesday, and 30-year gilt yields fell by the most ever 105 basis points.

“The yield on the two-year Treasury has gone up persistently over the course of the last several weeks, and for the first time, we’ve seen it go down for two days in a row, and that has given equities a breather,” Art Hogan, chief market strategist at B. Riley Wealth, asserts.

However, the outlook is still uncertain given that global central banks anticipate that interest rates will continue to rise this year.The Atlanta Fed’s president, Raphael Bostic, made the prediction on Wednesday that the Fed would have to raise interest rates by 75 basis points more in November.

Bostic stated, “Inflation is still high… and it is not moving with enough speed back down to our 2% target” during a conference call from Atlanta.”In the interim, U.S. rate futures have priced in a 41.2 percent probability of a rate increase of 50 basis points and a 58.8 percent probability of a rate increase of 75 basis points at the monetary policy meeting in November.”

In a few hours, the GDP data for the United States will be the focus of all attention today. Economists anticipate that the U.S. GDP will decrease by -0.6% q/q in Q2 compared to the previous figure of -1.6% q/q.

The U.S. Initial Jobless Claims data, which showed 213K claims last week, will probably also be of interest to investors. Economists predict that the new number will be 215K. GDP data for Canada will also be released today. Economists anticipate this number to be -0.1% m/m, which is a decrease from the previous value of +0.1% m/m.

In the United States, the 10-Year Treasury yield has increased by +3.86% to 3.850% at the present time.

As the Bank of England’s move failed, the Euro Stoxx 50 is down -1.56% this morning, reversing yesterday’s gains. Investors are awaiting Germany’s inflation data in order to obtain information regarding ECB interest rate increases. In light of Europe’s ongoing energy crisis as winter draws near, the region’s economic outlook remains extremely uncertain. Another factor that hurts European stocks is the more than 3% drop in shares of Swedish retailer H&M (HMB.S.DX) following the poor earnings,

S&P 500 Index

Thu, Sep 29th, 2022

S&P 500 Index ($SPX)

3,719.04 +71.75 (+1.97%)

Day Low

3,641.21

Day High

3,736.74

Open 3,651.94

52 Wk Low

3,623.29

52 Wk High

4,818.62

Last 3,719.0

S&P 500 SPDR (SPY).

Percentage of S&P 500 Stocks Above Moving Average

5-DAY AVERAGE

68.38%

20-DAY AVERAGE

8.15%

50-DAY AVERAGE

6.95%

100-DAY AVERAGE

16.30%

150-DAY AVERAGE

14.71%

200-DAY AVERAGE

14.71%