Market holds steady as investors await economic data; Intel and Arm shares drop

Stocks hovered near the flatline ahead of the Bank of England’s interest rate decision and the release of US initial jobless claims data. Treasuries saw a slight decline following a lackluster US bond auction.

The Stoxx 600 remained steady in Europe after a recent streak of gains, while S&P 500 futures hinted at a lower open on Wall Street. US Treasury yields dipped for the second consecutive day after a $42 billion auction of 10-year notes drew subdued interest. Government bonds in Australia, New Zealand, and Japan also experienced declines.

Investor enthusiasm waned as the earnings season neared its end, with market participants eagerly awaiting fresh economic data for clues regarding potential interest rate adjustments. Although the Bank of England is expected to maintain its current rates during Thursday’s meeting, traders are on the lookout for any signals indicating a more dovish stance among policymakers.

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Arm Holdings Plc’s US-listed shares fell sharply in late trading after issuing a modest annual forecast, while Intel Corp. shares dropped following the US government’s revocation of licenses allowing the company to supply chips to Huawei Technologies Co. Airbnb Inc. also saw a decline in its shares during after-hours trading amid indications of slower growth.

Upcoming inflation figures will provide further insights into the US economy, especially after recent labor market data suggested a cooling trend. Federal Reserve Bank of Boston President Susan Collins hinted at the need to maintain interest rates at historically high levels for an extended period to curb demand and mitigate inflationary pressures.

Currency markets saw limited movement, with the dollar index holding steady after a three-session uptick, while the yen weakened slightly against the greenback, hovering near weekly lows.

Chinese shares listed in Hong Kong recorded gains, fueled by optimism surrounding the recovery of the world’s second-largest economy, buoyed by better-than-expected export and import data for April.

In commodities, West Texas Intermediate crude oil extended its recent gains, supported by the Biden administration’s decision to increase the purchase price for replenishing the country’s emergency oil reserves. Gold prices also rose amid market dynamics.