Home Business STOCK MARKET NEWS: US Stocks Fall on Fear of Further Fed Hikes, Oil, Gas and Crypto All Fall

STOCK MARKET NEWS: US Stocks Fall on Fear of Further Fed Hikes, Oil, Gas and Crypto All Fall

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STOCK MARKET NEWS: US Stocks Fall on Fear of Further Fed Hikes, Oil, Gas and Crypto All Fall
Symbol Price To change %To change
Me: DJI $33,706.74 -.292.30 -0.86
SP500 $4,228.48 -55.26 -1.29
I: COMP $12,705.22 -,260.13 -2.01

US stocks were down early Monday morning as investors expressed concern over future Fed action.

Traders fear aggressive rate hikes this year by the Fed and central banks in Europe and Asia to rein in inflation that is at multi-decade highs could derail global economic growth.

“The Fed is still feeling inflation. Its actions haven’t even begun to dampen inflationary pressures at all,” ACY Securities’ Clifford Bennett said in a report. ‘economic activity. The economic downturn was already in play for other reasons.

US stocks fell on Friday, ending the week lower and posting a four-week run of gains for the S&P 500, as investors guessed how aggressively the Federal Reserve will need to act to rein in inflation.

The market suffered a series of jerky movements as traders reassessed their bets on what the Fed might do at its September meeting. For weeks, many investors were convinced that inflation might have peaked and that the central bank would tone down the scale of its future interest rate hikes.

But comments in recent days from central bank officials, combined with the release of the minutes of the Fed’s July meeting, have brought the possibility of continued aggressive rate hikes back to the fore.

On Thursday, Federal Reserve Bank of St. Louis President James Bullard said he would lean for a 0.75 percentage point increase in September.

β€œIt feels like a reassessment of whether there has been enough financial tightening,” said John Roe, head of multi-asset funds at Legal & General Investment Management. “And if there really isn’t, could we have a harder time getting central banks to do more?”

The S&P 500 lost 55.26 points, or 1.3%, to 4228.48 and fell 1.2% for the week. The Dow Jones Industrial Average fell 292.30 points, or 0.9%, to 33,706.74 and was down 0.2% for the week. The Nasdaq Composite fell 260.13 points, or 2%, to 12705.22 and fell 2.6% for the week.

Tech stocks suffered some of the biggest losses. Microsoft fell 1.4%.

Retailers, banks and communications companies also fell. Next week, central bankers will gather in Jackson Hole, Wyoming, for the Federal Reserve Bank of Kansas City’s annual economic policy symposium.

Traders will be watching official speeches closely for insight into how the Fed is thinking.

Meanwhile, Shanghai rose after China’s central bank lowered its target rate for a five-year loan to shore up weak home sales. Tokyo, Hong Kong, Seoul and Sydney fell.

The Shanghai Composite Index rose 0.5% to 3,272.89 while the Nikkei 225 in Tokyo fell 0.5% to 28,794.79. The Hang Seng in Hong Kong fell less than 0.2% to 19,743.12. South Korea’s Kospi fell 1.2% to 2,462.03 and Sydney’s S&P ASX-200 fell 0.9% to 7,051.70. India’s Sensex opened 1.1% lower, falling to 58,992.24. New Zealand and Singapore advanced while Bangkok and Jakarta fell.

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