This morning, futures tied to the Dow Jones Industrial Average have increased by 0.15 percent. S&P 500 and Nasdaq 100 futures have risen by 0.25% and 0.37%, respectively. On Friday, Wall Street closed on an uncertain day as investors tried to interpret conflicting statements from Federal Reserve members regarding future interest rate policy decisions. While the intention to keep rates at elevated levels for an extended period remains clear, the exact outlook remains uncertain.
The Dow Jones gained 0.2%, while the Nasdaq and S&P 500 saw a modest increase of 0.1%. According to Chicago Fed President Austan Goolsbee, the debate is shifting towards the duration of high-interest rates rather than the rate hike itself. New York Fed President John Williams emphasized that future decisions would depend on economic data.
However, despite forecast uncertainty, Dallas Fed President Lorie Logan stressed the need for further restrictive measures to control inflation. So, while a rate hike may be postponed, the goal remains 2% inflation. Investors are awaiting other indications from the Fed.
Energy stocks increased on Friday, driven by the ongoing rise in oil prices. The S&P sector recorded a 1% increase, accumulating a weekly gain of 1.4%. Among the major winners were Marathon Petroleum and Phillips 66, with a 3% increase. Valero Energy saw a significant jump of 4%. Additionally, some technology stocks, which had struggled in previous sessions, showed improvement. Microsoft and Salesforce saw an increase of approximately 1%.
Furthermore, Block recorded a 5.3% loss following a payment system disruption. After two consecutive days of losses, Apple recorded a modest increase of 0.4%. Apple had seen a decrease in the value of its shares following news that Chinese authorities are considering banning iPhones by public employees. This move is significant since China, including Hong Kong and Taiwan, represents Apple’s third-largest market, contributing 18% of its annual revenue of $394 billion.
Additionally, the vast majority of Apple products are assembled in China. This news could negatively affect sales among consumers, including relatives and citizens in general. Furthermore, it could reflect a broader Chinese government strategy to promote domestic technology adoption. At present, Apple has not issued any official statement on the matter. Still, the market has reacted with concern, highlighting how political decisions in China can have a significant impact on global technology companies.
Friday, September 8, 2023 Market Indices:
- DOW Jones: +0.22% at 34,576.59
- S&P 500: +0.14% at 4,457.49
- NASDAQ Composite: +0.092% at 13,761.52