U. S. Federal Reserve officials are gearing up for another interest rate hike before the year is out, though they haven't pinned down exactly when it will happen. They've got meetings set for October 28 and December 9 to make that call.
Minutes from their recent meeting show that a steady labor market and persistent inflation, which has been above target for more than five years, are pushing them toward a potential second rate increase in 2023. Even with all this anticipation, the summary didn't nail down a specific date, leaving traders hanging.
Over in the financial markets, the U. S. Treasury's auction of $39 billion in 10-year notes on Wednesday saw yields dip from their recent highs. The auction drew strong interest, especially from outside the usual dealer circle. The yield on the benchmark 10-year Treasury note hit its highest since April 2002, peaking at 5.365%. Meanwhile, the 30-year bond yield climbed to 5.732%, the highest since May 2002.
On Wall Street, U. S. stock markets took a hit. The Dow Jones Industrial Average dropped 0.66%, the S&P 500 slid 0.22%, and the Nasdaq Composite also fell 0.22%. In Asia, Japan's Nikkei 225 ended 0.92% lower, South Korea's Kospi tumbled nearly 2%, and Australia's S&P/ASX 200 stayed flat. Mainland China's markets were closed for the Golden Week holiday.
In tech news, Samsung Electronics grabbed headlines by announcing a preliminary third-quarter operating profit exceeding 100 trillion won. It's the first time the company has broken the 100 trillion won mark, thanks to rising demand for artificial intelligence. Samsung plans to release a detailed earnings report later this month.
Over in the consumer sector, Lululemon revealed that Athleta CEO Maggie Gauger is coming aboard later this month. This shake-up comes as competition heats up in the athleisure market.
On the energy front, worries about oil supply disruptions have eased a bit. Member nations of the International Energy Agency have agreed to focus on releasing diesel stocks to tackle climbing fuel prices.
In other developments, former President Donald Trump said on Wednesday that the U. S. doesn't see the death of a Russian lab worker from a suspected plague case as linked to a bioweapon. Trump also mentioned plans to call Russian President Vladimir Putin, who turned 74 on Wednesday, to talk about the incident.
