US Stock Market Today: Wall Street Opens Little Changed As Strong GDP Casts Cloud Over Fed Cuts
The US GDP has grown at the fastest in over two years, thereby dampening the argument of immediate rate cuts to catalyse economic growth.
The main US stock market indices opened little changed on Tuesday after a stronger-than-expected GDP data report cast cloud over future Fed rate cuts. S&P 500 and Nasdaq Composite opened marginally higher, whereas Dow Jones Industrial Average narrowly slipped.
The wider index, S&P 500, was up 0.07% or 5.02 points at 6,883.51 minutes after the opening bell, whereas the Nasdaq edged 0.09% or 20.81 points higher at 23,449.64. Dow Jones dipped 0.13% or 65.01 points to 48,297.67.
As of 10:10 a.m. local time, S&P 500 and Dow Jones traded flat at 6,875.60 and 48,352.53, respectively, while Nasdaq traded 0.17% lower at 23,389.98.
However, most of the Magnificent Seven stocks traded higher, with bellwether company Nvidia Corp. up 0.23%% to $184.12, Apple Inc. up 0.10% at $271.27, Google-parent Alphabet Inc. rising 1.21% to $313.50 and Amazon Inc. up 1.24% to $231.13.
The US GDP has grown at the fastest in over two years, thereby dampening the argument of immediate rate cuts to catalyse economic growth.
The economy grew at 4.3%, compared to 3.3% largely anticipated by economists. The GDP rate boosted yield on 10-year Treasury by three basis points to 4.20%.
"The market is getting thrashed after the higher than expected GDP figure," Tom di Galoma, managing director at Mischler Financial Group told news agency Bloomberg. He added, "Flows remain light in cash but quite heavy in futures selling."
"If the economy keeps producing at this level, then there isn’t as much need to worry about a slowing economy and concerns may actually flip back to the price-stability constraint," Chris Zaccarelli at Northlight Asset Management said while speaking to Bloomberg.
After the market opened, crude oil prices fell with West Texas Intermediate trading 0.34% lower at $57.82 a barrel. Spot gold prices edged 0.24% lower at $4,431.35 an ounce.
The Bloomberg Dollar Spot Index weakened against global currencies and fell 0.2%. The euro rose 0.1% to $1.1775, British pound went up 0.2% to $1.3490, and the Japanese yen edged 0.4% higher at 156.47 per dollar.
Bitcoin, the largest traded cryptocurrency, fell 1% to $87,372.51.
