Wall Street falls 1% with attention on the Fed

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Wall Street’s main indexes fell 1% on Tuesday as investors took positions awaiting new economic projections and another big interest rate hike from the U.S. Federal Reserve this week. week, to quell inflation that is at multi-decade highs.

* All 11 major S&P sectors were lower in early trading, with the real estate and commodities sectors down 1.6% and 2.1%, respectively.

* Stocks of rate-sensitive growth companies such as Meta (NASDAQ: META ) Platforms Inc, Tesla (NASDAQ: TSLA ) Inc, Microsoft Corp (NASDAQ: MSFT ), Nvidia (NASDAQ: NVDA ) Corp, Alphabet (NASDAQ: GOOGL ) Inc and Amazon.com Inc (NASDAQ: AMZN ) fell between 0.9% and 1.5% as Treasury yields rose in anticipation of a rate hike.

* The benchmark 10-year US Treasury yield hit 3.58%, its highest level since April 2011, while the closely watched 2-year to 10-year yield curve inverted further.

* An inversion in this part of the yield curve is considered a reliable indicator that a recession is coming in a year or two.

* The US central bank is expected to raise rates for the third consecutive time by 75 basis points on Wednesday, with markets also pricing in a 19% chance of a 100 basis point hike and expecting the terminal rate to fall at 4.49% in March 2023.

* The S&P 500 is trading below 3,900 points, a level seen by technical analysts as strong support for the index.

* The Dow Jones Industrial Average was down 396.47 points, or 1.28%, at 30,623.21, while the S&P 500 was down 49.09 points, or 1.26%, at 3,850.80. The fell 118.50 points, or 1.03%, to 11,416.52.

* Shares of Ford Motor (NYSE:  ) Co fell 8.8% after the automaker said inflation-related supplier costs will be about $1 billion higher than forecast in the current quarter. and that it sees between 40,000 and 45,000 vehicles in inventory due to lack of parts, which delays sales.

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