Which products, which were loved by the Queen, will now lose the royal crest?
U.S. stocks sank Thursday, giving back gains after a rally on Wall Street on Wednesday, as traders continued to contemplate the Federal Reserve's latest monetary policy decision.
The S&P 500, Dow and Nasdaq dropped sharply. Tech stocks underperformed, and the Nasdaq sank by 5% in its worst day since June 2020. The Dow shed more than 1,000 points, or 3.1%, to end at 32,997.97. A day earlier, the blue-chip index posted it best single-session gain since May 2020, rising 2.99%. The Nasdaq Composite surged by 3.2%, and the Dow added more than 900 points, or 2.8%.
The moves came in the wake of the Federal Reserve's first half-point rate hike since 2000, as the central bank took a notable step to address inflation currently running at its hottest rates in 40 years. The central bank also laid out its plans to begin rolling assets off its $9 trillion balance sheet starting June 1. The pace of this announced balance sheet reduction largely matched Wall Street's expectations heading into Wednesday's Fed statement.
"Thursday's stock selloff suggests that Wednesday's post-FOMC market action was a relief rally. We are still not out of the woods yet, as there is still too much uncertainty over how the Federal Reserve's actions will tame inflation without causing a recession," Zach Stein, chief investment officer of Carbon Collective, wrote in an email Thursday. "The concerns that triggered the stock market correction over the past few months, such as inflation, the Russia and Ukraine war and surging oil prices, are still with us and haven't been resolved yet."
But importantly, during his press conference Wednesday, Fed Chair Jerome Powell suggested the central bank was not currently discussing plans to raise interest rates by 75 basis points in the near-term. Stocks had risen immediately following those remarks, with many investors breathing a sigh of relief that the Fed was unlikely to raise interest rates even more aggressively in the coming months. Some had feared such a move would issue too strong a jolt to the economy already showing some signs of slowing. Still, however, Powell suggested that there was a "broad sense among the committee that additional 50 basis point increases should be on the table at the next couple of meetings."
“I think really what happened yesterday is that sentiment became so one-sided, really concerned about an overly hawkish Fed," Keith Lerner, Truist chief market strategist, told Yahoo Finance Live Thursday morning. "And a little bit of good news went a long way in Powell basically saying that 75 basis points isn’t under current consideration. I still think the debate about inflation peaking and how quickly it will come down will inject volatility.”
And even in absence of supersized 75 basis-point rate hikes, the Fed's path toward raising interest rates from ultra-low levels and embarking on quantitative tightening still presents a risk to economic growth, with markets having grown accustomed to the central bank's accommodative monetary policies during the pandemic. Powell himself acknowledged that some trade-off would take place between bringing inflation down and maintaining economic activity.
“There may be some pain associated with getting back to that, but the big pain is in not dealing with inflation and allowing it to become entrenched,” Powell said during his press conference.
Others also underscored these risks.
"In all policy moves, there are negative consequences, which hopefully are muted, and are less impactful than the issue that is being addressed and today that issue is inflation,” Rick Rieder, BlackRock chief investment officer of global fixed income, wrote in an email Wednesday. “The consequences we risk in policy tightening are potential recession, potential lost jobs and wages, and clearly tighter financial conditions that will weigh on virtually all financial markets.”
“There are many factors out of the Fed’s control (supply chain disruptions and geopolitics, for instance), but we’ll be watching closely to see how the Fed’s tightening of financial conditions impacts the broad economy and employment levels, which are very firm today but can clearly soften alongside of aggressive inflation-fighting monetary policy,” Rieder added.
Here were the main moves in markets as of 4:04 p.m. ET:
S&P 500 (^GSPC): -153.27 (-3.56%) to 4,146.90
Dow (^DJI): -1,063.09 (-3.12%) to 32,997.97
Nasdaq (^IXIC): -647.16 (-4.99%) to 12,317.69
Crude (CL=F): +$0.47 (+0.44%) to $108.28 a barrel
Gold (GC=F): +$10.20 (+0.55%) to $1,879.00 per ounce
10-year Treasury (^TNX): +14.9 bps to yield 3.0660%
Here were the main moves in markets as of 10:43 a.m. ET:
S&P 500 (^GSPC): -119.32 (-2.77%) to 4,180.85
Dow (^DJI): -728.01 (-2.14%) to 33,333.05
Nasdaq (^IXIC): -527.44 (-4.07%) to 12,437.42
Crude (CL=F): +$1.51 (+1.40%) to $109.32 a barrel
Gold (GC=F): +$17.00 (+0.91%) to $1,885.80 per ounce
10-year Treasury (^TNX): +12.9 bps to yield 3.0460%
U.S. initial unemployment claims rose to 200,000 for the first time since February last week, but still held at a historically low level as the labor market remained tight.
Initial jobless claims increased to the 200,000 threshold for the week ended April 29, the Labor Department said in its weekly report Thursday. During the prior week, claims had totaled 181,000.
Continuing jobless claims, which track the total number of individuals filing claims across regular state programs, declined to 1.384 million from the prior week's 1.403 million. This marked the lowest level for continuing claims since January 1970.
Here were the main moves in markets as of 9:34 a.m. ET:
S&P 500 (^GSPC): -50.41 (-1.17%) to 4,249.76
Dow (^DJI): -302.44 (-0.89%) to 33,758.62
Nasdaq (^IXIC): -217.35 (-1.68%) to 12,747.51
Crude (CL=F): +$2.89 (+2.68%) to $110.70 a barrel
Gold (GC=F): +$33.20 (+1.78%) to $1,902.00 per ounce
10-year Treasury (^TNX): +8.6 bps to yield 3.0030%
S&P 500 futures (ES=F): -28.25 points (-0.66%) to 4,267.00
Dow futures (YM=F): -162 points (-0.48%) to 33,806.00
Nasdaq futures (NQ=F): -116.00 points (-0.86%) to 13,415.25
Crude (CL=F): +$0.79 (+0.73%) to $108.60 a barrel
Gold (GC=F): +$28.80 (+1.54%) to $1,897.60 per ounce
10-year Treasury (^TNX): +3.5 bps to yield 2.95%
Here's where markets were trading Wednesday evening:
S&P 500 futures (ES=F): -6 points (-0.14%) to 4,289.25
Dow futures (YM=F): -40 points (-0.12%) to 33,929.00
Nasdaq futures (NQ=F): -20.5 points (-0.15%) to 13,510.75
Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn
Global Distributed Fiber Optic Sensing Market 2022-2026 The analyst has been monitoring the distributed fiber optic sensing market and it is poised to grow by $ 577. 26 mn during 2022-2026, accelerating at a CAGR of 8.New York, Sept. 13, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report "Global Distributed Fiber Optic Sensing Market 2022-2026" – https://www.reportlinker.com/p05126616/?utm_source=GNW 15% during the forecast period. Our report on the distributed fiber o
A Twitter whistleblower has launched a blistering attack on Twitter execs at a US Senate hearing, lambasting their ‘lack of competency’ as he detailed what he believes are serious safety issues on the social media platform. Peiter “Mudge” Zatko, who was Twitter’s head of security until he was fired earlier in the year, alleged the firm doesn’t delete users’ data after they deactivate their accounts, and has cybersecurity policies that expose it to hacking and disinformation by state aggressors. Twitter has denied this.
Global Feed Binders Market Global Feed Binders Market Dublin, Sept. 14, 2022 (GLOBE NEWSWIRE) — The "Global Feed Binders Market (2022-2027) by Type, Source, Livestock, Geography, Competitive Analysis and the Impact of Covid-19 with Ansoff Analysis" report has been added to ResearchAndMarkets.com's offering.The Global Feed Binders Market is estimated to be USD 4.67 Bn in 2022 and is expected to reach USD 6.46 Bn by 2027, growing at a CAGR of 6.7%.Market Dynamics Market dynamics are forces that i
More than 1,900 workers at Felixstowe, the country’s biggest container port, walked out last month.
The group reported a 32.4% jump in pre-tax profits to £209 million on a pro forma 52 week basis, up from £157.8 million the previous year.
Group chats were a lifeline during lockdown – but for many, the constant messages have become an oppressive distraction. Leaving, however, is not so simple
The Dutch government is set to allocate at least 150 million euros ($151.9 million) to prevent people being cut off by energy suppliers in the coming months if they can't pay their bills, Dutch broadcaster RTL reported on Monday citing government sources. The government would set up a fund to take over the bills of people who have had to switch to a new, expensive energy contract this year and can demonstrate that it's impossible for them to pay their bills. The fund would be partly financed by energy suppliers, as it would also protect them from going bankrupt if their customers couldn't pay, RTL said.
Global Medical Devices Market Global Medical Devices Market Dublin, Sept. 14, 2022 (GLOBE NEWSWIRE) — The "Medical Devices: Technologies and Global Markets" report has been added to ResearchAndMarkets.com's offering. This report incorporates an in-depth analysis of the medical device technology market, including market estimations and trends through 2020. Major players, competitive intelligence, innovative technologies, market dynamics and regional opportunities are discussed in detail. The rep
The average shop at the online supermarket was 6% smaller in the latest period.
Europe Residential Solar PV Panels Market Size, Share & Trends Analysis Report By Technology (Thin Film, Crystalline Silicone), By Grid Type (On-grid, Off-grid), By Country, And Segment Forecast, 2022 – 2030New York, Sept. 13, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report "Europe Residential Solar PV Panels Market Size, Share & Trends Analysis Report By Technology, By Grid Type, By Country And Segment Forecast, 2022 – 2030" – https://www.reportlinker.com/p06318475
(Reuters) -European shares dipped on Wednesday after higher-than-expected U.S. inflation cemented views of a large interest rate hike by the Federal Reserve next week, but a rally in retailers led by Spain's Inditex kept declines in check. U.S. consumer prices rose more than expected in August, data showed on Tuesday, giving the Fed ammunition to deliver a third 75-basis-point (bps) interest rate increase next Wednesday. The benchmark European index was headed for a month of gains despite snapping a three-session winning streak on Tuesday, supported by gains in lenders after the European Central Bank (ECB) delivered an unprecedented 75 bps interest rate hike last week.
The Rome University Luiss Is the Fastest Rising in 2022, With a Leap of 23 Places Luiss University is in the Top 100 of The Financial Times' 2022 Masters in Management ranking Luiss University is at 53rd place in the top 100 of the Financial Times' 2022 Masters in Management ranking MONACO, Sept. 13, 2022 (GLOBE NEWSWIRE) — Luiss University is at 53rd place in the top 100 of the Financial Times' 2022 Masters in Management ranking, with a leap of 23 places, making Luiss the fastest rising in 202
Households are braced for a prolonged period of high inflation and further interest rate rises, as the latest government figures showed prices had risen by 9.9pc in the last year.
Smart Immune pic Dr Pierre Heimendinger and Dr Frederic Lehmann, CTO and CMO of Smart Immune. Smart Immune Bolsters Management Team with Medical and Technical Appointments Dr Frederic Lehmann, MD, appointed Chief Medical Officer and Dr Pierre Heimendinger, PharmD, appointed Chief Technical Officer Dr Pierre Heimendinger and Dr Frederic Lehmann, CTO and CMO of Smart Immune. PARIS, France, September 13, 2022 – Smart Immune SAS, a clinical-stage biotechnology company developing ProTcell™, a thymus-
Aldi saw its market share rise by 1.2 percentage points as its sales jumped almost 19% over the 12 weeks to 4 September 2022.
Global Space Launch Services Market Global Space Launch Services Market Dublin, Sept. 13, 2022 (GLOBE NEWSWIRE) — The "Space Launch Services Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.The global space launch services market size reached US$ 11.32 Billion in 2021. Looking forward, the publisher expects the market to reach US$ 26.62 Billion by 2027, exhibiting a CAGR of 15.32% during 2021-2027
Firms say it does not feel like the economy is growing as energy and raw material costs rise.
France's favourite condiment, Dijon mustard, is hard to find these days, with signs on supermarket shelves warning the lucky few who spot jars that they can only take one home.
Global Sports Fishing Equipment Market 2022-2026 The analyst has been monitoring the sports fishing equipment market and it is poised to grow by $ 2. 45 bn during 2022-2026, accelerating at a CAGR of 3.New York, Sept. 13, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report "Global Sports Fishing Equipment Market 2022-2026" – https://www.reportlinker.com/p04090368/?utm_source=GNW 21% during the forecast period. Our report on the sports fishing equipment market provides a
Top-end steak restaurant Hawksmoor has said businesses should not be pressured to close “out of respect” for Queen Elizabeth's funeral next Monday, after supermarkets and retailers unveiled plans to shut their doors.
Which products, which were loved by the Queen, will now lose the royal crest?