Last Updated: 4:00 PM EST
Stock indices finished today’s trading session mixed after the Federal Reserve held interest rates steady, as expected. As a result, the Nasdaq 100 (NDX) and the S&P 500 (SPX) fell 0.7% and 0.34%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) gained 0.23%.
The central bank believes that progress in bringing down inflation has stalled and that a longer wait-and-see approach is needed. In addition, it will slow down its quantitative tightening efforts, which removes money from the economy by selling the bonds on its balance sheet or letting them expire. The Fed will reduce this number from $60 billion per month to $25 billion.
On Wednesday, the Bureau of Labor Statistics released its JOLTs Job Openings report, which helps measure job vacancies in the U.S. The number came in at 8.488 million job openings for March, below the expected 8.68 million. This is lower than the previous report, which saw 8.813 million job openings. Interestingly, job openings have been in an overall decline since peaking at 11.855 million back in May 2022’s report.
It’s important to remember that this data is for March, thus making it a lagging indicator. As companies continue to reduce their workforce in order to cut costs, this downward trend is likely to continue.
However, Automatic Data Processing (NASDAQ:ADP) released its Nonfarm Employment Change report, which came in better than expected. In April, nonfarm employment increased by 192,000. Expectations were for an increase of 179,000. This was led by the leisure and hospitality industry, which contributed 56,000 to the increase.
First Published: 4:37 AM EST
U.S. futures were lower on Wednesday morning as investors awaited the release of the Federal Reserve’s interest rate decision. The futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down by about 0.51%, 0.22%, and 0.07%, respectively, at 3.28 a.m. EST, May 1.
In after-hours action, Amazon (AMZN) stock gained over 1.2%, driven by stellar Q1 earnings. Conversely, shares of Starbucks (SBUX) fell 11.6% on a Q2 earnings miss and guidance cut. Moreover, Super Micro (SMCI) stock dropped over 10% as it missed analysts’ sales forecast. Further, Advanced Micro (AMD) stock decreased by about 7% after it reported Q1 earnings.
On the earnings front, chipmaker Qualcomm (QCOM) will release its Q2 earnings today. Wall Street expects QCOM’s top line to stay roughly flat, but its EPS will likely improve year-over-year. Mastercard (MA) is another prominent company that will announce its quarterly numbers today.
Looking ahead to this week’s economic reports, the Federal Reserve’s latest interest rate decision, a key driver of market sentiment, is due today. Moreover, April’s jobs report, a crucial indicator of economic health, is scheduled for release on Friday.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.7%. At the same time, WTI crude oil futures trended lower, hovering near $81.10 per barrel as of the last check.
Elsewhere, in Europe, trading volumes are likely to be light due to the Labor Day public holiday, with only London’s FTSE index operating.
Asia-Pacific Markets Dropped Today
Across Asia-Pacific markets, indices declined as investors braced for the U.S. Federal Reserve’s rate decision.
Japan’s Nikkei and Topix indices were down 0.34% and 0.50%, respectively. Due to the Labor Day holiday, China’s financial markets are closed from Wednesday, May 1, through Sunday, May 5. The Hong Kong Stock Exchange also observed a Labour Day holiday.
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