March 22, 2023

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Stocks fall after consecutive selling

Stocks fall after consecutive selling

US stocks fell for a third day in a row on Thursday after a hawkish reading of the minutes of the Federal Reserve’s latest policy-setting meeting in the previous session hinted that officials were preparing to intervene more forcefully to curb inflation.

The S&P 500 was down 0.2%, while the Dow Jones Industrial Average was down 150 points. The Nasdaq Composite was down 0.3%. The tech-heavy index, which started the week at 2%, capped its second consecutive session on Wednesday to close 2.2% lower. Meanwhile, the 10-year Treasury yield rose again to 2.637% – its highest level in three years.

Conversations detailed in the minutes of the Fed’s March 15-16 meeting released on Wednesday indicated that policymakers would soon start Resolving the central bank balance sheet of 9 trillion dollarsincluding $4 trillion in asset purchases collected to calm markets after the pandemic in early 2020. The minutes also noted that many FOMC participants “would have favored a 50 basis point increase” in interest rates. In March, the Fed raised interest rates for the first time since 2018.

“When those minutes were really released this afternoon, I think what I really saw was the consolidation around the news that the Fed is very intent on fighting inflation,” said Lisa Erickson, Senior Vice President of the US Bank. Yahoo Finance Live said.

Economists at Bank of America, which recently adjusted the Federal Reserve’s request to include a 50 basis point rate hike in June and July, said in a note on Wednesday that the newly released minutes show enough evidence to tip the scales toward a twofold increase in May.

“The reality is that we are in an unknown state here and the Federal Reserve has had the difficult task of untangling the massive monetary support over the past two years,” Charlie Ripley, senior investment analyst at Allianz Investment Management, said in a note. “Against this backdrop, it is highly conceivable that uncertainty in the course of monetary policy will remain an integral part of the markets and that is exactly what we are seeing with recent moves in interest rates and risk assets.”

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Another headwind that investors should continue to explore are developments in the Russo-Ukrainian War. United State Another set of sanctions was imposed on Wednesday That included a ban on US investments in Russia. The sanctions also targeted Russia’s Sberbank and Alphabank, two of the country’s largest financial institutions, as well as the two daughters of President Vladimir Putin, the wife and daughter of Russian Foreign Minister Sergei Lavrov, and senior members of Russia’s Security Council. However, power transactions have been missing from recent punitive measures.

Meanwhile, testifying before the House Financial Services Committee on Wednesday, US Treasury Secretary Janet Yellen warned that Russia’s war in Ukraine would have “enormous economic repercussions around the world,” including disruptions to the flow of food and energy.

Yellen also said that Russia He should be kicked out of the G20 Forum of Major EconomiesThe United States will boycott “a number of G-20 meetings” if Russian officials participate.

9:30 a.m. ET: Stocks fall for a third day in a row as investors weigh Federal Reserve minutes

Here are the major moves in the markets during Thursday’s opening bell:

8:37 a.m. ET: New jobless claims drop sharply to their lowest level since 1968

Unemployment insurance claims It fell sharply in the latest weekly data to the lowest level since 1968 It marks the third consecutive week that new claims have been below 200,000, with new layoffs and layoffs remaining low compared to pre-pandemic averages.

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work circle Latest weekly report on unemployment claims Showing that 166,000 claims filed in the week ending April 2, came in better than the 200,000 economists polled by Bloomberg had expected.

Last week’s new claims were also revised down significantly to 171,000 from 202,000 previously reported at the end of March. Before the pandemic, new claims averaged about 218,000 per week throughout 2019.

“The labor market appears to be weathering the pandemic, rapidly approaching a full recovery,” Rubella Farooqui, chief US economist at High Frequency Economics, wrote in a note. “Even as the labor market tightens, indicating optimism about economic conditions, a four-decade price hike dampens expectations.”

Some of the fluctuations in the latest weekly jobless claims data likely reflect a change in the way the Labor Department adjusted numbers to take into account seasonal factors. Beginning with Thursday’s report, the Department of Labor has reverted to using “additive” seasonal adjusting factors for the data, while over the course of the pandemic, the agency has been using “additive” seasonal adjusters to help facilitate large shifts in the data.

7:40AM ET: HP stock jumps after Buffett disclosed 11% of his stake

Warren Buffet’s Berkshire Hathaway in a new file late Wednesday The company disclosed the accumulated 121 million shares of HP An 11.4% stake, worth $4.2 billion.

HP stakes (HPQ) is up more than 13% in pre-market trading before the opening bell on Thursday.

“Berkshire Hathaway is one of the most respected investors in the world and we welcome them as an investor in HP Inc,” an HP spokesperson To Yahoo Finance by email.

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The purchase is the latest in a recent shopping spree by Berkshire Hathaway. Buffet also acquired approximately 15% (worth $7.6 billion) in Occidental Petroleum (OXY) Last month.

7:10 a.m. ET: Contracts on the S&P 500, Dow and Nasdaq rise after heavy selling

Here’s how to trade US stock futures ahead of Thursday’s open:

  • S&P 500 futures contracts (ES = F.): +9.25 points (+0.21%) to 4485.00

  • Dow futures contractsYM = F.): +15.00 points (+0.04%) to 34414.00

  • Nasdaq futures contractsNQ = F.): +53.50 points (+0.37%) to 14,558.75

  • raw (CL = F.): +1.49 dollars (+1.55%) to 97.72 dollars per barrel

  • gold (GC = F.): + $6.70 (+0.35%) to $1,929.80 per ounce

  • Treasury for 10 years (^ degeneration): +0.00 basis points to produce 2.6090%

6:13pm ET Wednesday: Futures muted after two-day losing streak

Here is where the markets were trading before the evening session on Wednesday:

  • S&P 500 futures contracts (ES = F.): -3.00 points (-0.07%) to 4,472.75

  • Dow futures contractsYM = F.): -29.00 points (-0.08%) to 34370.00

  • Nasdaq futures contractsNQ = F.): -1.00 points (-0.01%) to 14,504.25 points

  • raw (CL = F.): +1.52 dollars (+1.58%) to 97.75 dollars per barrel

  • gold (GC = F.): + $5.00 (+0.26%) to $1,928.10 per ounce

  • Treasury for 10 years (^ degeneration): +5.3 basis points to produce 2.6090%

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, April 4, 2022. REUTERS/Brendan McDermid

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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