Home » US stocks lower as investors await possible Fed rate hike later this week | October 31, 2022

US stocks lower as investors await possible Fed rate hike later this week | October 31, 2022

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symbol price Change %Change
Me: DJI $32,861.80 828.52 2.59
SP500 $3,901.06 93.76 2.46
I:COMP $11,102.45 309.78 2.87

US stocks plunged last night
Investors are waiting for the Fed’s next move later this week.

Wall Street closed higher last week after watching strong earnings from Apple and other big companies and a sharper inflation in September.

The Fed is widely expected to announce another rate hike of 0.75% at this week’s meeting, triple the normal margin.

Investors are looking for signs that the authorities are satisfied that previous hikes imposed to keep inflation in check near a 40-year high are working and future gains may taper. increase.

Investors fear that rate hikes by the Fed and other central banks to curb inflation could push the global economy into recession. The US central bank has raised its benchmark lending rate from near zero in his March to a range of 3% to 3.25%.

“The tone of Fed Chairman Jerome Powell will be important,” IG’s Yeap Jun Rong said in a report after this week’s meeting. Investors are looking for “growing concerns about economic conditions” rather than “current head-on determination to curb inflation”.

On Wall Street, the benchmark S&P 500 index rose 2.5% on Friday after US government data showed consumer prices rose 6.2%, the same rate as the previous month.

Core inflation, which strips out volatile food and energy prices to show underlying trends, accelerated to 5.1% from 4.9% in August. Fed officials, including Mr. Powell, have said they are ready to keep raising rates until inflation is certain to subside.

The Dow Jones Industrial Average rose 2.6% and the Nasdaq Composite rose 2.9%.

Earlier in the week, Facebook operator Meta Platforms Inc. lost almost a quarter of its stock market value after reporting two straight quarters of declining earnings.

Tick ​​tock. Microsoft Corp. and Google’s parent company, Alphabet Inc., also reported slowdowns in key areas.

Also on Friday, government data showed wage increases for American workers were in line with expectations.Chairman Powell has named wages as one of the indicators the Fed will look to when deciding to raise rates. increase.

Meanwhile, Asian stocks were broadly higher on Monday ahead of the Federal Reserve’s decision to raise rates again this week as investors expected the US central bank to scale back plans for further rate hikes.

Tokyo, Sydney and Seoul rose while Hong Kong and Shanghai fell. Crude oil prices fell. The euro fell below his $1.

Tokyo’s Nikkei 225 rose 1.8% to 27,587.46. This is because the government reported that retail sales increased in his September, but industrial production weakened. The Shanghai Composite Index fell 0.8% to him at 2,893.48 after manufacturing surveys showed weaker production and demand.

Hong Kong’s Hang Seng fell 1.3% to 14,671.10. His Kospi in Seoul rose 1.1% to 2,293.61, while Sydney’s S&P-ASX 200 rose 1.2% to 6,863.50. Markets in New Zealand and Southeast Asia also rose.

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