U.S. stocks rebounded in choppy trading, and weekly jobless claims rose to the highest level since August 2023. The Bank of England held its key lending rate steady, and the central bank raised hopes for a rate cut in the near future. Japan's real wages declined for the 27th month in a row. China's trade surplus shrinks, but exports rise faster than expected. 

Benchmark indexes on Wall Street struggled after a weak batch of quarterly results. The yield on 10-year Treasury notes edged lower, and crude oil prices advanced. 

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Stocks on Wall Street traded higher after the economy added fewer jobs in April. Tech stocks advanced after Apple announced a whopping $110 billion stock repurchase plan.

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U.S. investors looked beyond rate uncertainty and reacted positively to the latest corporate results. The U.S. trade deficit hovered near a 10-month low. European markets traded sideways amid deeper manufacturing sector woes. Chinese electric vehicle makers reported mixed sales in April amid fierce competition. 

A day after the Fed's rate decisions, Treasury yields held firm, the dollar looked higher, and stocks on Wall Street were slightly higher. 

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Will the Fed Abandon the 2% Target Rate?

May 1, 2024
Alexander Garcia
Investors are increasingly worried about the Fed's ability to lower rates as service sector inflation shows no sign of easing further amid wages rising at a pace not commensurate with the Fed's 2% target rate. Financial markets in Europe and China were closed for the May Day and Labor Day holidays. 

Stocks were under pressure ahead of the Federal Reserve's monetary policy announcements later in the day. The yield on 10-year Treasury notes edged higher, and crude oil prices turned lower.

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Inflation worries were reignited on Wall Street after a measure of wages and benefits rose at the fastest pace in a year in the first quarter. The S&P 500 index and the Nasdaq extended their monthly decline to over 3%, and European markets fell nearly 2%. 

The S&P 500 index and the Nasdaq Composite are set to close down in April after rising for six months in a row as investors lower rate expectations amid stubborn inflation.

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Major averages on Wall Street advanced as investors awaited earnings from leading tech companies and the Fed's rate decisions later in the week. In Europe, inflation in Germany held steady but accelerated in Spain. Positive earnings supported the market's advance in China. The presumed government intervention lifted the Japanese yen.

Benchmark indexes on Wall Street looked up following the best week in five months as investors prepared for another batch of fresh earnings and key economic updates.

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Stock market indexes extended weekly gains after Google and Microsoft reported sharply higher sales and earnings. Market sentiment was also bolstered after the personal consumption expenditure index, an alternative measure of inflation, edged higher but stayed below 3%. 

Market indexes in New York and Europe fell more than 1%, and the latest GDP report provided another signal to the stock market that inflation is still well anchored in the economy, supporting the Fed's case for keeping the rates unrevised. 

U.S. major averages on Wall Street turned lower as investors reacted to the latest batch of earnings. IBM declined 9% after falling short of revenue growth expectations, and Meta Platforms plunged 14% after the company's second-quarter revenue outlook disappointed some investors. 

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Major indexes on Wall Street turned lower after rate expectations faded following another strong set of economic data. The yield on Treasury notes edged higher. European markets erased morning gains. In Asia, the yen continued to hiver near a three-decade low, and indexes in mainland China edged lower.