| Code | price | they change | % change |
|---|---|---|---|
| Me: DJI | $33,947.10 | -, 482.78 | -1.40 |
| SP500 | $3,998.84 | -72.86 | -1.79 |
| Me: COMP | $11,239.94 | -, 221.56 | -1.93 |
US stocks were falling early Tuesday morning
After spending most of the night hours in decline.
Investors are watching the Fed warily, hoping it will slow the pace of interest rate hikes with the aim of curbing stubbornly high inflation.
The Institute for Supply Management reported Monday that the services sector, which makes up the bulk of the US economy, showed surprising growth in November.
US factory job orders and durable goods orders rose more than expected in October. This news is positive for the broader economy, but it complicates the Fed’s fight against inflation because it likely means the central bank will continue to raise interest rates to reduce price pressures.
The Federal Reserve meets next week and is expected to raise interest rates by half a percentage point, which is an easing of some sort from the steady stream of three-quarters of the percentage point rate increases.
The central bank has raised the benchmark interest rate six times since March, pushing it to a range of 3.75% to 4%, the highest rate in 15 years. Wall Street expects the benchmark price to reach a peak range of between 5% and 5.25% by mid-2023.
The aim is to cool growth without hitting the brakes and causing a recession that runs through the global economy, slowing trade and consumer spending.
The S&P 500 fell 1.8% Monday, to 3,998.84. The Dow Jones Industrial Average lost 1.4%, to 33,947.10, and the Nasdaq Technology Index fell 1.9%, closing at 11,239.94. s
Shares of shopping mall companies fell further, sending the Russell 2000 Index down 2.8%, to 1,840.22.
Wall Street will get a weekly update on jobless claims on Thursday, while November’s monthly report on producer prices is due on Friday.
Meanwhile, stocks were mostly lower in Asia on Tuesday after Wall Street slumped as surprisingly strong economic reports highlighted the difficulty of the Fed’s fight against inflation.
Tokyo is up, Shanghai is flat, and other regional markets are down. US futures rose and oil prices rose as well. In Asian trading, Hong Kong’s Hang Seng Index fell 0.7% to 19367.84 and South Korea’s Kospi Index fell 1.1% to 2393.16. The Shanghai Composite Index settled at 3,212.53. The Nikkei 225 index in Tokyo closed 0.2% higher, at 27,885.87. Stocks also fell in Bangkok and Taiwan.
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