The Dow Jones Industrial Average closed down for a third day in a row on Thursday (September 22) as concerns over the impact of a Federal Reserve (Fed) rate hike pressured investors and continued share selling. This includes technology stocks.
- The Dow Jones Industrial Average closed at 30,076.68 points, down 107.10 points or -0.35%,
- The S&P 500 index closed at 3,757.99 points, down 31.94, or -0.84%, and
- The Nasdaq index closed at 11,066.81, down 153.39, or -1.37%.
The Fed voted to raise interest rates by 0.75% at its meeting on Wednesday. which, although in line with market expectations But the Fed continued to indicate a further increase in rates in 2023, disappointing investors who were expecting a rate cut next year. The Fed lowered its forecast for US Gross Domestic Product (GDP) this year to 0.2%.
Fed Chairman Jerome Powell told reporters after the meeting: He will not consider a rate cut until he is confident that inflation figures fall to the Fed’s 2% target, even if doing so could slow down the economy. Meanwhile, Mr Powell admitted that the US economy is likely to slow down gradually. or that soft landing is less
After the Fed meeting and Mr Powell’s statement, Investors expect the Fed to continue raising interest rates in its two remaining meetings this year, with the CME Group’s FedWatch tool indicating that investors weigh 68.1% that the Fed raises interest rates by 0.75% to 3.75-4.00% at its meeting on November 1-2, and 66.7% believe that the Fed will raise interest rates by 0.50% to 4.25-4.50% at its meeting on December 13-14.
Nine of the 11 stocks counted in the S&P500 index closed in negative territory. led by luxury goods stocks Ralph Lauren was down 4.25 percent, Nike was down 1.24%, Mastercard was down 2.02 percent, American Express was down 3.82 percent and Bank of America was down 1.96%.
Technology stocks that are sensitive to interest rates are falling. The yield on two-year US Treasuries rose above 4.1 per cent for the first time since 2008, with Amazon down 1.04%, Apple down 0.64 per cent, India down 5.28 per cent, Tesla shares down 4.06%
Airline stocks continue to sell. United Airlines was down 4.62 percent, Delta Air Lines was down 3.85 percent, American Airlines was down 3.93 percent and JetBlue Airways was down 7.07 percent.
About the economic data reported last night. The number of first-time claims for unemployment benefits rose by 5,000 to 213,000 last week, the Labor Department said. But it was below analysts’ estimates of 218,000.
The Conference Board said its Leading Economic Index (LEI) fell 0.3% in August after falling 0.5% in July, the sixth straight month of decline. It is a sign of a recession. It was affected by the rapid increase in interest rates at the US Federal Reserve (Fed).
By InfoQuest News Agency (23 Sep 65)
Tags: Dow Jones , Stock Market , New York Stock Exchange