World shares were mixed today after Wall Street closed its third straight winning week with a tiny gain, according to the Associated Press. The futures for the S&P 500 and the Dow Jones Industrial Average were virtually unchanged this morning.
On Friday, the S&P 500 edged up 0.1% to 4,514.02 and is near its highest level in three months. The Dow Jones Industrial Average inched up less than 0.1% to 34,947.28, and the Nasdaq composite gained 0.1% to 14,125.48.
Markets hope inflation has cooled enough for the Federal Reserve to finally stop its market-crunching hikes to interest rates. Now, traders are betting on when the Fed could actually begin cutting interest rates, something that can juice prices for investments and provide oxygen for the financial system. The Fed has said that it plans to keep rates high for a while to ensure that the battle against inflation is definitively won, but traders are thinking cuts could begin early in the summer of 2024.
In the bond market, the yield on the 10-year Treasury rose to 4.47% early today from 4.44% late Friday. Just a few weeks ago, it was above 5%, at its highest level since 2007 and undercutting prices for stocks and other investments.
One source of potential worry about inflation has been receding in recent weeks. Oil prices have plunged amid worries about a mismatch between too much crude supply and too little demand. A barrel of U.S. crude for December delivery gained 50 cents to $76.54. Brent crude, the international standard, rose 63 cents to $81.24 per barrel.
In currency trading, the U.S. dollar dropped to 148.85 Japanese yen from 149.58 yen.
