Stocks lost ground again on Wall Street on Tuesday as traders weighed the next moves of the Federal Reserve in its campaign to cool the inflation stubbornly hot.
The S&P 500 Index fell 1.4%, with nearly 90% of the benchmark index’s values in the red. The Dow Jones Industrial Average fell 1% and the Nasdaq 2%.
Technology stocks, communication companies and retailers posted some of the biggest losses. Apple fell 2.6%, Disney 3.4% and automatic zone 3.2 percent.
Small business values also fell, dragging the index lower. russell 2000 1.9 percent. The major indices are heading for a weekly loss after posting two consecutive weekly gains.
The yields of the captivity they mostly fell. The profitability of 10 year treasury bond it fell to 3.52%, from 3.58% on Monday.
The markets europeans lower closed and Asianmixed.
Several companies posted big moves following financial updates and purchase announcements.
The broader market slide comes a day after shares tumbled as prices data economic plus powerful than expected raised fears that the Federal Reserve has yet to rein in inflation. To do this, the Federal Reserve intentionally slows down the economy with higher interest rates.
Investors closely follow economic data and company announcements to get a better idea of how the economy is handling stubbornly high inflation. They are also trying to determine if inflation is declining at a rate that allows the Federal Reserve relax interest rate hikes. The Federal Reserve’s policy risks slowing the economy down too much and sending it into a recession.
The Federal Reserve will meet with the next week and interest rates are expected to rise half point percentage. It has raised its reference rate six times since March, placing it between 3.75% and 4%, the highest in recent 15 years. Wall Street expects the benchmark rate to hit a maximum range of 5% to 5.25% by mid-2023.
Wall Street will get the weekly update on jobless claims on Thursday. the working market It has been one of the strongest focuses of the economy.
Throughout the week, investors will learn important information about the inflation and the reaction of the consumers given the high prices.
On Friday, the government will publish its November report on producer prices. This will allow investors to better understand the impact of inflation on companies.
On Friday, the University of Michigan will release its December survey on consumer confidence.
With growing concern about a recession, Fitch Ratings has revised down its forecasts for global economic growth to reflect interest rate hikes by the Federal Reserve and other central banks.
The rating agency’s World Economic Outlook report estimated global growth of 1.4% in 2023, revised down from 1.7% in its September forecast. US growth in 2023 was 0.2%, down from 0.5% previously, as the pace of monetary policy tightening increases.
(With information from AP)
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