S&P 500 and Nasdaq Hover Near Flatline, 10-Year Treasury Yield Hold at 15-Month Low

Barry Adams
16 Sep, 2024
New York City

Stocks struggled to advance in Monday's trading as investors awaited the Fed's rate decisions and economic projections later in the week. 

The S&P 500 index increased 0.1% and the Nasdaq Composite decreased 0.4%, and investors are hoping that the rate-setting committee is ready to start its rate-cut cycle.

Investors are on edge, and the recent decline in inflation and comments from Fed Chair Powell and other officials have raised hopes of a rate cut of at least 25 basis points. 

Last week, investors raised hopes that the Fed may lower the rate by 50 basis points after consumer price inflation dropped to a three-year low and crude oil prices fell to this year's low. 

Moreover, the European Central Bank lowered its three key lending rates by 25 basis points following the easing of inflation below 2%. 

The Federal Reserve Bank is set to announce its rate decisions and economic projections at the end of its 2-day meeting on Wednesday. 

The Bank of England and the Norges Bank are expected to hold their rates steady on Thursday, and the Bank of Japan is likely to hold its rate range unrevised on Friday. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,631.52, the Nasdaq Composite fell 0.4% to 17,608.19, and the Russell 2000 index rose 0.3% to 2,188.49. 

The yield on 2-year Treasury notes edged lower to 3.58%, 10-year Treasury notes inched down to 3.66%, and 30-year Treasury bonds inched lower to 3.98%.

WTI crude oil increased $1.90 to $70.54 a barrel, and natural gas prices edged down 4 cents to $2.34 a thermal unit.

Gold rose by $3.11 to $2,581.70 an ounce, and silver increased by $0.09 to $30.86.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.70.

 

U.S. Stock Movers

Apple declined 3% to $215.79 amid worries that the company's new iPhone 16 may fall short of its sales target amid weak demand in China. 

Oil service and exploration company stocks advanced after the crude oil prices rebounded in Monday's trading for the second consecutive day in a row. 

Exxon Mobil jumped 0.9% to $112.15, Chevron jumped 0.6%, Transocean gained 1.3% to $4.26, and Hess Corp. added 1.2% to $129.08.