Volatility returned to US markets with a vengeance yesterday as Stocks crashed on the first trading day what is traditionally considered to be a tough month for equities. Tech stocks led the way again with the Nasdaq notching up a loss of over 3%.
Concerns that the Fed may be pushed to a 50-basis point cut in a couple of weeks dominated market chat as odds jumped to 37%. US treasury yields dipped as the dollar rallied on haven buying.
Oil prices also took a hit as supply concerns pulled back on news of a deal in Libya combined with last weeks OPEC+ update hit the market.
The event calendar heats up further today with some key data out of Australia and the US as well the Bank of Canada’s Rate Decision, where they are widely expected to cut rates by another 25-basis points.
| Market | Change | Close |
| Dow | -1.48% | 40,947 |
| S&P | -1.97% | 5,537 |
| Nasdaq | -3.02% | 17,179 |
| USD | +0.2% | 101.84 |
| US Treasury – 2 Year | -6.2 bps | 3.865% |
| US Treasury – 10 Year | -7.0 bps | 3.841% |
| Oil – Brent | -4.9% | $73.75 |
| Oil – WTI | -4.4% | $70.34 |
| Gold | -0.3% | $2,492.60 |
Today’s Events (AEST):
Asian Session
- 11.30 am – Australia – GDP Data
US Session
- 11.45 pm – Canada – Bank of Canada Rate Decision
- 12.00 am – US – JOLTS Job Openings Data
- 12.30 am – Bank of Canada Press Conference
