The Dow and S&P 500 ended the day up 1.47% and 0.38%, respectively. Profit taking left the Nasdaq in negative territory, with an upswing in US Treasury yields contributing to the loss. However, the Nasdaq Composite Index fell by 0.23% on Thursday. The stats reflected the effects of Fed policy measures to cool the economy and tame inflation. On Friday, US inflation and personal income/spending figures from Thursday will draw investor interest. However, a weaker USD/JPY failed to counter investor sentiment toward Fed interest rates and the economic outlook. Mixed numbers from Japan created more uncertainty about the Bank of Japan’s plan to exit negative rates.
Weaker-than-expected private sector PMI numbers from China raised expectations of further stimulus from Beijing. The Asian economic calendar influenced risk appetite on Thursday. 10-year US Treasury yields continued signaling a more dovish rate path, falling 1.48% to 4.259%.
On Wednesday, the Nasdaq Composite Index and S&P 500 declined by 0.16% and 0.09%, while the Dow gained 0.04%. However, the US markets were cautious before the US inflation numbers on Thursday. The comments countered mixed signals from FOMC members during the Wednesday session.
