US Stocks Close Lower For Fourth Session In A Row
"); jQuery("#212 h3").html("
"); });
2022-11-04 HKT 04:49
US stocks closed lower for a fourth consecutive session on Thursday as economic data did little to alter expectations the Federal Reserve would continue raising interest rates for longer than previously thought.
Following the Federal Reserve's statement on Wednesday, comments from Fed Chair Jerome Powell that it was "very premature" to be thinking about pausing its rate hikes sent stocks lower as US bond yields and the US dollar rose, a pattern that extended into Thursday.
Economic data on Thursday showed a labour market that continues to stay strong, although a separate report showed growth in the services sector slowed in October, keeping the Fed on its aggressive interest rate hike path.
"Years ago the Fed’s job was to take away the punch bowl and that balance is always a very difficult transition, you want the economy to slow to keep inflation from getting out of hand but you want enough earnings to support stock prices," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
"It is about the rate of change as much as the change so when the rate of change starts to slow ... that almost becomes a positive even though in absolute terms we are going to continue to see higher rates, and higher rates means more competition for stocks and lower multiples."
The Dow Jones Industrial Average fell 146.51 points, or 0.46 percent, to 32,001.25, the S&P 500 lost 39.8 points, or 1.06 percent, to 3,719.89 and the Nasdaq Composite dropped 181.86 points, or 1.73 percent, to 10,342.94.
While traders are roughly evenly split between the odds of a 50 basis-point and 75 basis-point rate hike in December, the peak Fed funds rate is seen climbing to at least 5 percent, compared with a prior view of a rise to the 4.50-4.75 percent range.
Investors will closely eye the nonfarm payrolls report due on Friday for signs the Fed's rate hikes are beginning to have a notable impact on slowing the economy. (Reuters)
US Stocks Rise On Hopes Of Pause In Rate Increases
Wall Street stocks finished solidly higher on Thursday, reflecting better sentiment on the US economy and a consensus vi... Read more
China's Financial Risks 'controllable': Regulators
The head of the National Financial Regulatory Administration on Thursday told a high-profile forum in Shanghai that the ... Read more
Banks Cut Yuan Deposit Rates, Could Boost Consumption
China's biggest banks on Thursday said they have lowered interest rates on yuan deposits, in actions that could ease pre... Read more
Cheese And Wine Put EU, Australia Deal In Peril
Australia on Thursday threatened to walk away from a blockbuster free trade deal with the European Union unless its prod... Read more
US Stocks End Mixed As Tech Shares Are Sold Off
Gains by industrial companies lifted the Dow on Wednesday, while weakness among technology shares pushed the Nasdaq deci... Read more
Amazon 'plans Prime Video Streaming Service With Ads'
Amazon.com is planning to launch an advertising-supported tier of its Prime Video streaming service, the Wall Street Jou... Read more