Last Updated: 4:21 PM EST
Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 0.17%, 0.29%, and 0.86%, respectively. Earlier today, the Cleveland Fed reported the inflation expectations. U.S. CEOs in the manufacturing and services sectors. Interestingly, they now predict a 3.8% increase in the Consumer Price Index over the next 12 months, up from 3.4% in the previous quarter.
This uptick in inflation expectations follows a sharp rise in long-term Treasury yields since the Fed’s rate cut in September. Minneapolis Fed President Neel Kashkari noted that these yield changes could reflect the market’s reactions to anticipated economic policies from President-Elect Donald Trump and a higher-growth environment.
Consumers also expect inflation to stay elevated, as five-year inflation expectations rose to 3.1% in October from 3.0% in September, according to the University of Michigan. This trend may cause the Fed to adopt a cautious approach to future rate cuts.
First Published: 4:02 AM EST
U.S. stock futures edged lower on Tuesday morning following a strong trading session yesterday. Investors are now looking ahead to key inflation data scheduled for release this week. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.05%, 0.15%, and 0.11%, respectively, at 3:34 a.m. EST, November 12.
In regular trading on Monday, all three major indices hit new records. The Dow Jones closed up 0.7% and surpassed the 44,000 level for the first time. Further, the S&P 500 reached a new all-time high, while the Nasdaq Composite extended its winning streak to four days. The rally was fueled by investor optimism over the recent presidential election results and the Federal Reserve’s interest rate cuts.
Interestingly, Bitcoin (BTC-USD)-related stocks, such as Coinbase (COIN) and MicroStrategy (MSTR), saw significant gains as Bitcoin surged to a new all-time high of $89,600 yesterday.
Today’s economic calendar is relatively light, but investors are focused on upcoming comments from Fed Governor Christopher Waller and Minneapolis Fed President Neel Kashkari. Further, investors will keep an eye on earnings reports from major companies. Home Depot (HD), Plug Power (PLUG), SoundHound AI (SOUN), Novavax (NVAX), and Spotify (SPOT), among others, are scheduled to release their results today.
Later in the week, the release of Consumer and Producer Price Index data points will take center stage, as they provide insights into inflationary pressures.
Meanwhile, the U.S. 10-year treasury yield is up at the time of writing, floating near 4.363%. At the same time, WTI crude oil futures trended lower, hovering near $68.10 per barrel as of the last check.
Elsewhere, European markets opened lower today due to concerns that the Trump administration would impose higher tariffs on European companies.
Asia-Pacific Markets Traded Lower on Tuesday
Most of the Asia-Pacific indices traded lower today as investors assessed the impact of Donald Trump’s initiatives, such as tax cuts and aggressive trade policies.
Hong Kong’s Hang Seng index was down 2.84%. Further, China’s Shanghai Composite and Shenzhen Component indices declined 1.39% and 0.65%, respectively. Moreover, Japan’s Topix index finished lower by 0.4%, but the Nikkei index gained by 0.07%.
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