The US dollar strengthened, buoyed by robust manufacturing data and a bullish tone expected from Fed Chair Powell, while US stocks slid for a fifth straight day.
Key moves
- USD gained 0.71% against JPY, 0.57% against CHF, 0.39% against EUR, 0.36% against GBP, 0.27% against CAD, 0.22% against AUD and 0.9% against NZD.
- S&P 500 fell 0.40% to 6,370.16.
- NASDAQ declined 0.34% to 21,100.31.
- Dow Jones dropped 0.34% to ~34,475.50.
- Russell 2000 edged up 0.21% to 2,274.09.
- 2‑year Treasury yield rose to 3.791% (+4 bps).
- 5‑year Treasury yield increased to 3.855% (+4.5 bps).
- 10‑year Treasury yield moved to 4.327% (+3.2 bps).
- 30‑year Treasury yield climbed to 4.920% (+1.6 bps).
- US existing home sales for July rose to 4.01 million, beating expectations of 3.92 million.
- S&P Global PMI manufacturing index hit 53.3 versus an expected 49.5.
- Fed Chair Powell scheduled to speak at 10 AM ET, with markets anticipating a hawkish data‑dependent stance.
Summary
Strong economic data and a hawkish outlook for the Fed kept the dollar on a bullish path, yet the equity markets remained cautious, leading to declines in the major indices. Treasury yields edged higher, reflecting the consensus that rate cuts are unlikely until September.
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