Stock Market Today: Stocks Closed Mixed in Choppy Trading
Volatility returned as market participants adjusted their expectations for rate cuts.
Volatility returned Monday and bond yields spiked as market participants adjusted their bets on when the Federal Reserve will start cutting interest rates. Last week's blowout jobs report, as well as upcoming inflation data and scheduled commentary from Fed policymakers, made for a choppy session.
The March jobs report released last week "eclipsed all expectations," notes Deutsche Bank, adding to the evidence that the Federal Open Market Committee (FOMC) need not rush to cut interest rates.
"While the March employment strength and recent re-acceleration in labor income growth reinforce Fed officials' lack of urgency to begin normalizing rates, the improving labor supply narrative that Chair Powell has recently emphasized remains well supported by the latest data," wrote Brett Ryan, senior U.S. economist at Deutsche Bank.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Data from the Bureau of Labor Statistics on Friday showed the U.S. added 303,000 new jobs in March – well above economists' expectations for 200,000. Additionally, the unemployment rate edged down to 3.8% from 3.9%.
One positive data point helping support calls for the Fed to start cutting rates was that average hourly earnings – a measure of inflation – rose at their slowest annual rate since June 2021. Still, the 0.3% month-over-month rise in wages was quicker than the 0.1% increase seen in February.
The yield on the benchmark 10-year Treasury note spiked to a 2024 high Monday as markets adjusted to the possibility that rates would remain higher for longer. As of April 8, futures traders assigned a 51% probability to the first quarter-point rate cut coming in June, down from 57% a week, ago, according to CME Group's FedWatch Tool.
At Monday's close, the Dow Jones Industrial Average was down 0.03% at 38,892, the S&P 500 was off 0.4% at 5,202, and the Nasdaq Composite was up 0.3% to 16,253.
CPI and earnings season on deck
Looking ahead, there are a few things investors will be paying close attention to in the day ahead. One is oil prices. Crude futures are up nearly 22% for the year to date, which "threatens the 'inflation is falling' narrative and has driven expectations higher," says Liz Young, head of investment strategy at SoFi.
Inflation will be front and center on the economic calendar, with the March Consumer Price Index (CPI) set for release Wednesday morning.
And finally there's earnings season. While this week's earnings calendar is relatively light, Friday's results from several big banks, including JPMorgan Chase (JPM), mark the start of the first-quarter reporting season.
Telsa jumps on robotaxi news
In single-stock news, Tesla (TSLA) gained 4.9% after CEO Elon Musk said that the electric vehicle (EV) maker would debut a robotaxi on August 8. Shares in Telsa gained about $25 billion in market value on the news.
Monday's TSLA rally followed Friday's fade, which was precipitated by a Reuters report suggesting the electric vehicle maker is scrapping plans for a low-cost car. In a post on X, Musk's social media platform, the Tesla CEO wrote "Reuters is lying (again)."
Related content
- Bank of America Gets Downgraded Ahead of Earnings
- TIPS vs I-Bonds
- How Interest Rates Impact Stock Prices
-
Trump Reshapes Foreign PolicyThe Kiplinger Letter The President starts the new year by putting allies and adversaries on notice.
-
How to Plan a (Successful) Family ReunionFrom shaping the guest list to building the budget, here's how to design a successful and memorable family reunion.
-
These Unloved Energy Stocks Are a BargainCleaned-up balance sheets and generous dividends make these dirt-cheap energy shares worth a look.
-
These Unloved Energy Stocks Are a Bargain
Cleaned-up balance sheets and generous dividends make these dirt-cheap energy shares worth a look.
-
You've Heard It Before, But This Investment Advice Still Pays Off"Time in the market beats timing the market" ¬— been there, done that, right? But don't write off the underlying advice. There's a reason it's a popular saying.
-
Are Clients Asking About Adding Crypto to Their Retirement Plans? This Is How Advisers Can Approach This New 401(k) FrontierAdvisers need to establish clear frameworks to address client interest, navigate risks like volatility, and ensure they meet their fiduciary responsibilities.
-
3 Niche Oil and Gas Investments for Next-Gen Wealth BuildersLesser-known segments of the oil and gas sector present unique opportunities for next-gen investors and family offices, as long as they're vetted thoroughly.
-
A Portfolio Checklist If You're Planning to Retire in 2027Are you planning on retiring in 2027? This portfolio checklist will help put you on the right path.
-
How to Avoid Being Buried by the Tax Avalanche in Retirement: Tips From a Wealth AdviserAll that cash you have in tax-deferred accounts could launch you into a higher tax bracket when you start withdrawals. It's time to protect your income.
-
I'm a Financial Adviser: This Is the Real Secret to Retirement SuccessFor real retirement security, forget about chasing returns and focus instead on the things you can control: income, taxes, risk-taking and decision-making.
-
Is Your Retirement Plan Based on Social Security Fact or Fiction?One in two Americans don't know much about Social Security — and some are basing their retirement on mistaken beliefs. It's time to separate fact from fiction.
