Kerala News Journal
Buisness

Wall Street stocks decline as interest rates are raised by the Federal Reserve

After the Federal Reserve increased interest rates again on Wednesday, Wall Street stocks fell, but the central bank hinted it might hold off on further increases.

After a volatile session, the Dow Jones Industrial Average closed down 0.8 percent at 33,414.24.

The tech-heavy Nasdaq Composite Index fell 0.5 percent to 12,025.33, while the broad-based S&P 500 fell 0.7 percent to 4,090.75.

In a decision that was generally anticipated by observers, the Fed increased its benchmark lending rate for a tenth time in a row on Wednesday, by another quarter-point.

The central bank modified previous phrasing that implied more strongly that higher rates were coming by saying it will watch economic circumstances to decide whether further moves may be needed.

In a press conference, Fed Chair Jerome Powell said, “We feel like we're getting close, or maybe even there” in terms of raising interest rates enough to combat inflation.

However, Powell also said that interest rate reductions in 2023 were unlikely, which caused stocks to decline in the afternoon's final shift.

“It feels like the market didn't get everything it wanted but maybe got everything it could expect,” said Art Hogan, an analyst at B. Riley Financial, calling the move a “moderately dovish hike.”

However, Interactive Brokers' Steve Sosnick claimed that the market's decline was evidence that “people have been coming around to the general consensus that this was more hawkish than the dovish.”

Following recent bank failures, regional banking shares, which have been under pressure, ended the day lower, reversing earlier gains.

PacWest Bancorp sank by 2.0%, KeyCorp down by about two%, and Zions Bancorporation dropped by 5.3%.

Starbucks dropped 9.2 percent, among other businesses, after reporting better-than-expected profits and a cautious outlook that dismayed investors.

Following the publication of encouraging clinical data for a new treatment for early Alzheimer's disease, donanemab, Eli Lilly's share price increased by more than 6%.

Related posts

To compete with Samsung and Moto, Sony may release the Xperia flip phone soon

Pakistan Economic Crisis: Inflation rate reached a record high of 37.97% in Pakistan, prices of potatoes to eggs created an outcry

Rupee and US dollar settle almost unchanged at 83.39

BBC Admits Tax Evasion In India Underreporting Rs 40 Crores Of Income In Tax Returns

Go First Lessors May Examine Leased Aircraft Under NCLAT

India’s Gold Rate: Is It Stable, High, or Low? Check November 6 Prices in Your City