Stock Market Today: Stocks lower with inflation in focus; Bitcoin tops $60,000

02/28/2024 21:23

Stocks could see today's GDP data as a sign that inflation pressures carried over into the start of the year.

Check back for updates throughout the trading day

U.S. equity futures slipped lower Wednesday, while the dollar extended gains against its global peers and Treasury yields inched higher, as investors braced for an update on fourth-quarter GDP ahead of a key inflation report later in the week.

Updated at 8:50 AM EST

Bitcoin boom

Bitcoin prices topped the $60,000 mark for the first time since November of 2021, and look set to test the all-time high of around $68,789 it reached the following month.

“The approval and launch of spot Bitcoin ETFs, which track the price of the cryptocurrency directly rather than futures contracts, have provided institutional investors with a more accessible and regulated means of entering the crypto market, accelerating institutional adoption, and bringing more liquidity and stability to the market," said Nigel Green of London-based deVere Group.

#Bitcoin tops $60,000 for 1st time since Nov 2021, amid surging optimism that demand for the token is widening beyond committed digital-asset enthusiasts. iShares Bitcoin ETF manages >$8bn in assets after one and a half months. pic.twitter.com/wu9x7KFrA3
— Holger Zschaepitz (@Schuldensuehner) February 28, 2024

Updated at 8:40 AM EST

Solid growth, rising prices

The Bureau of Economic Analysis posted its second estimate of fourth quarter GDP, showing a growth rate of 3.2% for the final months of last year.

Overall inflation pressures, however, were also firming, with the BEA's fourth quarter tally of PCE price rising 1.7%, compared to a Street estimate of 1.5%, adding extra focus on tomorrow's January inflation report.

Stocks were little-changed in the wake of the release, with futures tied to the S&P 500 indicating a 12 point opening bell gain and those linked to the Dow suggesting a 90 point pullback.

BREAKING: The second reading of US Q4 2023 GDP comes in at 3.2%, below expectations of 3.3%
We are on track for 6 consecutive quarters of positive GDP growth.
We have not had 2 consecutive quarters with declining GDP since Q2 2022.
Is the Fed on track for a soft landing?
— The Kobeissi Letter (@KobeissiLetter) February 28, 2024

Updated at 8:25 AM EST

Beyond 'squeeze'

Beyond Meat shares are soaring in pre-market trading after posting a surprisingly strong set of fourth quarter sales figures and forecast a big boost in profit margins over the coming year.

The plant-based food group, one of the heaviest shorts in the market, is set to open 60% higher at $11.95 each.

Stock Market Today

Stocks ended modestly higher yesterday, with the S&P 500 eking out a 0.17% gain and the small-cap Russell 2000 index rising 1.3%, in an otherwise quiet session highlighted by solid demand for a $42 billion 7-year Treasury bond auction.

Benchmark yields were edging higher overnight, however, matching a move in the dollar, as investors looked to Thursday's reading of the Federal Reserve's preferred inflation gauge, the PCE Price Index, to further establish the central bank's rate path.

Ahead of that reading also comes the latest update on fourth-quarter GDP growth, which was last estimated at 3.3% and follows the Atlanta Fed's latest real-time reading of 3.2% for the current quarter.

The solid growth, alongside a resilient labor market, suggests inflation pressure could remain elevated well into the spring.

Benchmark 10-year Treasury-note yields were marked 2 basis points higher at 4.291% while 2-year notes were little changed at 4.681%.

The U.S. dollar index, which tracks the greenback against a basket of six global currencies, was marked 0.26% higher at 104.102.

In stocks, Ebay (EBAY) shares jumped 4.9% after the online marketplace posted better-than-expected fourth-quarter earnings, powered in part by solid holiday spending.

Beyond Meat (BYND) soared 66% after the plant-based-food company surprised investors with stronger-than-expected fourth-quarter sales and a boost in overseas revenue.

Apple (AAPL) shares were also in focus, slipping 0.16% after the tech giant unveiled plans to scrap its decade-long project to build an autonomous car, opting instead to shift the investment and talent to its nascent AI division.

AI-related stocks will also be in focus after the close of trading, with January-quarter updates from Snowflake (SNOW) and Salesforce (CRM) .

On Wall Street, stock futures suggest a modestly weaker open, with contracts tied to the S&P 500 indicating a 16 point decline and those linked to the Dow Jones Industrial Average suggesting a 115 point pullback.

Futures tied to the tech-focused Nasdaq, which is up 6.82% for the year, are priced for a 68 point decline.

In overseas markets, Europe's Stoxx 600 was marked 0.26% lower in Frankfurt, while Britain's FTSE 100 fell 0.66% in London.

Overnight in Asia, China stocks turned lower after a budget report failed to confirm hopes of significant stimulus from Beijing.

A weaker yen was unable to help the Nikkei 225 close in positive territory, with the benchmark falling 0.08% to 39,208.03 points.