Investors were on edge as they awaited Federal Reserve Chair Jerome Powell’s speech, with expectations of a rate cut in September. The major market averages were mixed, with the Dow slightly up, the S&P 500 slightly down, and the Nasdaq Composite also in the red. Yields on 10-year and 2-year Treasuries rose, reflecting investor uncertainty.
Deutsche Bank’s Jim Reid noted that sentiment turned sour due to concerns over the Middle East situation and rising interest rates. The possibility of a rate cut in June decreased following strong retail sales data for March and core retail sales acceleration. Market analyst Richard Hunter expressed caution, mentioning that economic data and consumer spending strength may delay the need for interest rate cuts and reduce pressure on the Federal Reserve.
As investors awaited Powell’s speech, new economic data was released showing a decline in housing starts and building permits for March, along with U.S. industrial production data matching expectations. With mixed market performance, rising yields, and uncertainties surrounding interest rates, investors are closely monitoring economic indicators and Powell’s speech for future market direction.