Wall Street Looks Down Ahead of Rate Hike, Treasury Yields Rebound

Barry Adams
31 Oct, 2022
New York City

Stocks on Wall Street edged lower as investors digested a flood of earnings reports last week and awaited the Fed's rate decision this week. 

Treasury yields traded higher ahead of the Fed's two-day policy meeting starting on Tuesday and the central bank is widely anticipated to deliver another 75 basis points rate hike. 

On the last day of trading in October, benchmark indexed edged lower after strong gains in the previous week. 

The S&P 500 index decreased 0.3% to 3,891.20 and the Nasdaq Composite index fell 0.64% to 11,031.33. 

In October, the S&P 500 index gained 5.3% and the Nasdaq Composite rose 1.6%. 

Crude oil declined $1.35 to $83.54 a barrel and natural gas rose 41 cents to $6.14 a thermal unit. 

The yield on 2-year Treasury notes jumped to 4.49%, 10-year notes rose to 4.09% and 30-year bonds increased to 4.13%. 

 

Eurozone Inflation Jumps Record High, GDP Growth Slowed 

European markets lacked direction and investors are anticipating another large-size rate hike from the Bank of England on Thursday.

Inflation in the eurozone accelerated to 10.7% in October from 9.9% in September, according to the latest data released by Eurostat Monday.  

A separate report from the statistics office showed that gross domestic product rose at a slower pace of 0.2% in the third quarter after rising 0.8% in the previous quarter.

The GDP growth on an annual basis dropped to 2.1% from 4.3% rate in the second quarter, according to the preliminary data released today.

The final and revised data are scheduled to be released on November 15.

The DAX index rose 0.4% to 13,297.71, the CAC-40 index added 0.3% to 6,289.75 and the FTSE 100 index advanced 1.0% to 7,116.52.

Credit Suisse jumped more than 4.4% after the troubled Swiss investment bank unveiled a detailed financing plan to raise 4 billion Swiss francs.

Fresenius SE jumped 5.8% after the dialysis center operator lowered its fiscal 2022 annual outlook and said net income is estimated to fall between the high teen and mid-twenties percentage range.

UniCredit SpA increased nearly 2% after the Italian lender lifted its full-year net income outlook on higher net interest rates.  

International Distributions Services PLC formerly known as Royal Mail gained 5.7% after its largest workers union withdrew its plan to strike next week.