S&P 500 posts the best day since May as yields slump, Apple dips on earnings result
Peak rate hike bets continued to fuel the relief rally in global stock markets as the Bank of England followed suit, pausing rate hikes for the second consecutive time. Wall Street accelerated gains for the second straight trading day, with the S&P 500 posting the best trading day since May, following the Fed’s dovish hint. The US 10-year Treasury yield slid 12 basis points to 4.67%, the lowest since 16 October.
Sliding bond yields sent the US dollar lower, in turn lifting all the other G-10 currencies and commodity prices. The worst-beaten currency, the New Zealand dollar, strengthened the most, thanks to the risk-on sentiment. Crude oil prices took the macro tailwind and rebounded more than 2%.
On the earnings front, Apple’s shares dipped in after-hours trading due to the fourth straight quarterly revenue decline despite an earnings beat. The tech giant’s revenue fell 1% year on year due to tepid iPhone sales in Great China, while service revenue again topped market expectations.
The US non-farm payroll that is due for release tonight will be the focus steering market movements on the last day of the week.
Asian markets are set to open higher. ASX 200 futures were up 1.2%, Hang Seng Index futures rose 1.14%, and Nikkei 225 futures climbed 1.20%.