As a general recap, the market was overall declining despite some records. Shortly after 3:15 PM EST, the $S&P 500 Index traded down 0.74%. The $Dow Jones Industrial Average fell about 1.53%, and the $Nasdaq Composite Index fell 0.39%. By direction, 10,000 equities declined while 3,000 climbed Thursday.
Thursday, investors gauged S&P PMI numbers that came in generally higher with 50.9 in manufacturing, 54.4 in Composite, and 54.8 in Services. Initial jobless claims came in lower than last week, at 215k.
In the most recent meeting minutes released Wednesday, many FOMC members commented on their uncertainty about when rates should come down. Several participants said they were willing to raise rates further.
The committee, during their April 30-May 1 meeting, found that uncertainty came from the possibility that "high interest rates may have smaller effects than in the pas." Participants said interest rates would stay put unless inflation numbers were clearly at 2%, or the labor market clearly weakens. Members said they would be willing to raise rates if "risks to inflation materialize in a way that such an action became appropriate."
This week investors will also watch numerous Fed speeches. Federal Reserve Governor Christopher Waller said on Tuesday that if economic data continues to weaken over the next three to five months, the central bank might consider lowering interest rates by the end of 2024.
Monday Morning, Fed Vice Chair Jefferson said the economy is growing at a solid pace, and its too early to tell if the current disinflation slowdown will last longer. Cleveland Fed President Loretta Mester on Monday suggested she was thinking about backing away from her prior expectation of three cuts this year.
Last week, Wednesday CPI numbers for April came in right at expectations. Prices advanced 3.4%, and core prices advanced 3.6% in April compared to a year ago, and 0.3% month over month.
The $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ was 4.93, and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ 4.47.
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