US stocks trade mixed as investors look to Fed comments for interest rate clues

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US stocks were mixed on Tuesday as investors look to comments from Fed officials for clues on interest rates.Fed Governor Chris Waller said that recent economic data suggests the Fed can “proceed carefully” with further rate hikes.Any further increases would be a surprise to investors, based on the CME FedWatch Tool.

US stocks were mixed on Tuesday as investors digested comments from Federal Reserve Governor Christopher Waller, who told CNBC that the Fed can “proceed carefully” with further interest rate hikes.

“There is nothing saying we need to do anything imminent,” he said of additional increases, basing his view on recent economic data.

Investors are awaiting more Fedspeak later this week to ascertain whether there are more interest rate hikes in store, even as inflation continues to show signs of falling. 

Any further hikes would be a surprise to most investors, according to the CME FedWatch Tool, which is currently pricing in no more interest rate hikes for this cycle and a potential interest rate cut by May 2024. 

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday: 

S&P 500: 4,509.19, down 0.15%Dow Jones Industrial Average: 34,846.39, up 0.02% (8.68 points)Nasdaq Composite: 13,981.73, down 0.36%

Here’s what else is going on today: 

The strike in Hollywood has wiped out $5 billion from California’s economy. Warner Brothers Discovery warned that the strike could hurt the company’s 2023 earnings by $500 million.The chances of a US recession have dropped to just 15% now that the Fed is probably done with hiking interest rates, according to Goldman Sachs. As the US dollar loses some influence in global oil markets, it could mean that a partial de-dollarization movement can pick up steam, according to JPMorgan. Chinese property giant Country Garden paid its dollar bond interest within its grace period, narrowly averting a default.

In commodities, bonds, and crypto: 

West Texas Intermediate crude oil rose 1.94% to $87.21 a barrel. Brent, the international benchmark, jumped 1.52% to $90.35 a barrel. Gold fell 0.53% to $1,956.60 per ounce. The yield on the 10-year Treasury bond rose four basis points to 4.22%. Bitcoin fell 0.19% to $25,768. 

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