[이코노믹리뷰=노성인 기자] New York stocks fell all at once on fears of inflation caused by the Federal Reserve’s warning about the Federal Open Market Committee (FOMC) and rising producer prices.
At the New York Stock Exchange (NYSE) on the 14th (local time), the Dow Jones Industrial Average fell 106.77 points (0.30%) from the battlefield to 35,544.18, and the Standard & Poor’s 500 Index was 34.88 points (0.75%) from the battlefield. The trade closed at 4,634.09, down. The Nasdaq index, which focuses on technology stocks, closed at 15,237.64, down 175.64 points (1.14%) from the previous trading day.
On this day, investor sentiment deteriorated due to concerns over the results of the last FOMC meeting of the year and rising prices of production facilities.
The Fed will release a statement outlining its outlook on the economy, inflation and interest rates after tomorrow’s FOMC meeting. According to a CNBC survey of 31 economists, analysts expect the Fed to end its tapering by March next year and expect its first rate hike in June next year. Interest rates are expected to rise three times a year over the next two years.
According to the U.S. Department of Labor, the production price index (PPI) rose 9.6% in November compared to the same period last year, which was higher than the market consensus (based on the Dow Jones) of 9.2%. Compared to the previous month, it rose 0.8%, which also exceeded the forecast (0.5%).
By industry, stocks related to finance (0.6%) rose on the back of expectations for an interest rate rise. Information and communication (-1.6%), real estate (-1.3%), and industrials (-1.0%) all showed weakness.
By stock, large tech stocks all underperformed. While Microsoft fell 3.26%, Alphabet (-1.32%), Netflix (-1.09%), Meta (-0.23%), Apple (-0.81%), Tesla (0.82%) and Amazon (-0.29%) also fell. .
Bank stocks were bullish on the possibility of an early rate hike. Goldman Sachs (1.08%), Bank of America (1.26%), JP Morgan Chase (0.76%) and Wells Fargo (0.67%) closed higher.
Pfizer’s stock rose 0.6% after a study showed that oral treatment for COVID-19 could reduce hospitalizations or fatalities by 89%.
Analysts feared that the further hawkish (preferred tightening) action by the Fed would have a bigger impact on the market.
“It could be a signal that the Fed is going to raise rates sooner than expected next year to catch inflation,” Hani Leda, portfolio manager at Pinebridge Investments, told the Wall Street Journal. did.
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