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what is going on with the market

Although annual inflation fell compared to July, it didn’t fall as much as economists expected. That could give the Fed license to hike interest rates even faster and higher than forecast. The Dow was down 1,300 points, or 4%, with minutes to go before the closing bell mercifully rings on Wall Street.

what is going on with the market

The Dow plummeted nearly 900 points in late morning trading…and all 30 Dow components were in the red. Nine Dow stocks, including tech giants Intel (INTC), Microsoft (MSFT), Apple (AAPL) and Salesforce (CRM), were down more than 4% each. The tech sector was hit particularly hard Tuesday, as investors ratcheted up their bets for a historically https://www.dowjonesanalysis.com/ large interest rate hike by the Federal Reserve next week. Already, the Fed has raised rates by a historic half point and then twice by three quarters of a point. Only one stock in the tech-heavy Nasdaq 100 index was higher Tuesday…and not by much. The US Consumer Price Index Tuesday showed prices in August rose a bit.

China cuts key interest rate in the latest move to boost its ailing property sector

The news wasn’t much better for investors in the broader market. The S&P 500 was down more than 3% and just four stocks in the blue chip index were in positive territory. Agriculture company Corteva (CTVA) was the S&P 500 leader, gaining 2% following news of a stock buyback. Fertilizer stocks CF Industries (CF) and Mosaic (MOS) and chemicals company Albemarle (ALB) were higher too. Wall Street’s mood has largely tracked the rapidly changing expectations regarding inflation and rate hikes.

what is going on with the market

Stocks had been on a four-day winning streak prior to Tuesday’s plunge. One strategist suggested that there could be more market pain ahead. Traders may have made the mistake of assuming that inflation would soon no longer be a major economic problem. Wall Street’s big fear is that higher rates will eventually lead to an economic slowdown or even a recession. Equities lost traction after a rally that has spurred concern about sky-high valuations — especially in megacaps, leaving the group vulnerable to big moves in the face of bad news. Apple Inc.’s iPhone woes in China deepened while Advanced Micro Devices Inc. hit a US roadblock in selling an artificial-intelligence chip to the Asian nation.

AP Explains: Dow hits record, stocks rally as Fed signals interest rate cuts in 2024

The end of the trading day will temporarily stop the selling. But investors have another inflation report to (fear? dread? seems unlikely that anyone is looking forward to it) on Wednesday. It was a broad-based slide, with all eleven sectors of the market heading lower. Tech stocks, retailers and banks were among the biggest losers. Those three groups stand to get hit the hardest if the Federal Reserve raises interest rates even more aggressively to try and get inflation under control. The market is worried that hotter-than-expected inflation will prompt the Federal Reserve to raise interest rates more aggressively, inflicting serious damage to the US economy in the process.

Economists expected prices would fall very slightly in August as gas prices have dropped for 91 straight days. Instead, prices rose, giving investors a collective heart attack https://www.topforexnews.org/ over the Fed’s plans to curb inflation. The market has grown increasingly nervous that the Fed will raise rates faster and higher than expected to get inflation under control.

  1. Just a month ago, before Fed chair Jerome Powell gave a speech that suggested more big rate increases were coming, the Fear & Greed Index was indicating levels of Greed, a sign of complacency.
  2. The regulator dropped a contested requirement mandating that companies report emissions from their supply chains and customers’ use of their products.
  3. The Dow plummeted nearly 900 points in late morning trading…and all 30 Dow components were in the red.
  4. One strategist suggested that there could be more market pain ahead.
  5. Only one stock in the tech-heavy Nasdaq 100 index was higher Tuesday…and not by much.
  6. Stock declines have accelerated, with the Dow down 850 points.

The S&P 500 fell 3% and the Nasdaq was down 3.9%, wiping out last week’s gains. Investors are incredibly anxious about inflation, which refuses to go away. The Dow plummeted more than 1,050 points, or 3.3%, in late afternoon trading Tuesday.

How major US stock indexes fared Wednesday, 2/21/2024

The S&P 500 and Nasdaq fared even worse, tumbling 3.6% and 4.5% respectively. Stocks came under pressure as a trio of tech heavyweights fell, with traders wading through mixed economic data in the run-up to Jerome Powell’s testimony to Congress. The situation on Wall Street was ugly midmorning Tuesday, as investors grew increasingly nervous about the prospect of even higher rate hikes that could last for a longer period of time. Tuesday’s losses wiped out a week’s worth of gains on Wall Street. Investors are concerned that the Federal Reserve’s response to Tuesday’s report could hurt the US economy — possibly sending it into a recession. The forecast is for a year-over-year increase of 8.8% for overall producer prices and 7.1% over the past 12 months for core PPI, which excludes food and energy costs.

The VIX, a volatility index that is one of the seven components of the Fear & Greed Index, shot up nearly 8%.

Just a month ago, before Fed chair Jerome Powell gave a speech that suggested more big rate increases were coming, the Fear & Greed Index was indicating levels of Greed, a sign of complacency. The US government will release figures for the producer price index, https://www.forexbox.info/ which measures prices at the wholesale level…as opposed to today’s consumer price index report. As stocks settle after the trading day, levels might still change slightly. The stock market sell-off following Tuesday’s inflation report is turning into a rout.

The regulator dropped a contested requirement mandating that companies report emissions from their supply chains and customers’ use of their products. There is a lot of bubble talk lately, but it’s easy to tell a story of how recent market gains could be largely justified. That prompted Glenmede chief investment officer of private wealth Jason Pride to note in a report that these are the most dramatic annual price increases for food since Sony released the Walkman portable cassette player. Stock declines have accelerated, with the Dow down 850 points. The Dow has tumbled 900 points as Wall Street waves the white flag on inflation. The CNN Business Fear & Greed Index, which measures seven gauges of market sentiment, is once again showing signs of Fear on Tuesday as the broader market plunged.

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