New York: wall StreetThree major U.S. indices closed lower on Wednesday as investors bet that the latest economic data will do nothing to propel the market. federal Reserve Off track from its aggressive interest rate hike cycle aimed at containing runaway inflation.
Data showed that while US job openings declined in April, they remained high, suggesting that wage increases contributing to continued high inflation as companies scramble for workers.
In addition, US manufacturing activity picked up pace in May as demand for goods remained strong, easing worries about an impending recession.
Along with the data, investors were monitoring the public comments of several Fed officials on Wednesday. And a Fed report showed the economy in most US regions expanding at a modest or moderate pace from April to the end of May, with signs the Fed’s efforts to cool demand were being felt.
But strategists said they expect the market to trade largely sideways until inflation slows to such an extent that investors can realistically bet on holding back on rate hikes.
Mona Mahajan, senior investment strategist at Edwards Jones, said: “We can’t hold on to the notion of stagnation unless we continue to slow down inflation.” And inflation readings due next week.
Investors are watching economic data closely for clues about what this could mean for interest rates.
“Today’s release does not provide any information that would prompt the Federal Reserve to become any less aggressive or reduce its aggressiveness in its rate hike campaign,” said Mark Luschini, chief investment strategist at Jenny Montgomery Scott.
Also on Wednesday, San Francisco Fed Chair Mary Daly said she sees interest rates rising by half a point in the next few meetings as the central bank grapples with high inflation, raising rates to 2.5% as soon as possible. Is. This was in line with comments from Fed Governor Christopher Waller on Monday.
JPMorgan Chase & Co chief executive Jamie Dimon described the challenges facing the US economy as a “storm” down the road and called on the Fed to take coercive measures to avoid putting the world’s largest economy into recession. urged.
The Dow Jones Industrial Average fell 176.89 points, or 0.54%, to 32,813.23, the S&P 500 fell 30.92 points, or 0.75%, to 4,101.23 and Nasdaq The composite ended 86.93 points or 0.72% lower at 11,994.46.
Energy was the only gainer of the S&P’s 11 key industry sectors, rising 1.8% as oil prices rose.
The biggest laggards were financials, down 1.7%, and healthcare, which was the biggest drag on the S&P 500, down 1.4%. The consumer staples sector declined 1.3%, while materials and real estate also closed down more than 1%.
Uncertainty about Fed policy, prolonged supply chain problems from the war in Ukraine and the COVID-19 lockdown in China have affected stocks, with the benchmark S&P 500 index falling nearly 14% year-on-year.
Luschini at Jenny Montgomery Scott said the stock’s upward move would be unlikely to break out before more clarity in the market on inflation and higher consumer prices as well as the ability to absorb Fed actions.
“There is nothing imminent, which is likely to catalyze all the concerns that have eroded the market to the level we are at now,” he said.
The benchmark US 10-year Treasury yield had climbed to 2.92%, the highest in two weeks.
At the end of the session, the meta platform collapsed and was the second biggest drag on the S&P after the chief operating officer. sheryl sandberg She said in a Facebook post that she would leave the company after 14 years. It closed with a decline of 2.6%.
Salesforce ended 9.9% after the enterprise software firm raised its full-year adjusted profit outlook and said it saw no material impact from an uncertain macroeconomic environment.
Victoria’s Secret climbed 8.9% after the lingerie retailer beat first-quarter profit estimates as costs fell.
The number of declining issues is greater than those going forward NYSE by a ratio of 1.64-to-1; On the Nasdaq, a 1.90-to-1 ratio favored the downside.
The S&P 500 posted a new 52-week high and 29 new lows; The Nasdaq Composite posted 29 new highs and 124 new lows.
On US exchanges, 11.45 billion shares changed hands, compared to an average of 13.25 billion for the past 20 sessions.
Data showed that while US job openings declined in April, they remained high, suggesting that wage increases contributing to continued high inflation as companies scramble for workers.
In addition, US manufacturing activity picked up pace in May as demand for goods remained strong, easing worries about an impending recession.
Along with the data, investors were monitoring the public comments of several Fed officials on Wednesday. And a Fed report showed the economy in most US regions expanding at a modest or moderate pace from April to the end of May, with signs the Fed’s efforts to cool demand were being felt.
But strategists said they expect the market to trade largely sideways until inflation slows to such an extent that investors can realistically bet on holding back on rate hikes.
Mona Mahajan, senior investment strategist at Edwards Jones, said: “We can’t hold on to the notion of stagnation unless we continue to slow down inflation.” And inflation readings due next week.
Investors are watching economic data closely for clues about what this could mean for interest rates.
“Today’s release does not provide any information that would prompt the Federal Reserve to become any less aggressive or reduce its aggressiveness in its rate hike campaign,” said Mark Luschini, chief investment strategist at Jenny Montgomery Scott.
Also on Wednesday, San Francisco Fed Chair Mary Daly said she sees interest rates rising by half a point in the next few meetings as the central bank grapples with high inflation, raising rates to 2.5% as soon as possible. Is. This was in line with comments from Fed Governor Christopher Waller on Monday.
JPMorgan Chase & Co chief executive Jamie Dimon described the challenges facing the US economy as a “storm” down the road and called on the Fed to take coercive measures to avoid putting the world’s largest economy into recession. urged.
The Dow Jones Industrial Average fell 176.89 points, or 0.54%, to 32,813.23, the S&P 500 fell 30.92 points, or 0.75%, to 4,101.23 and Nasdaq The composite ended 86.93 points or 0.72% lower at 11,994.46.
Energy was the only gainer of the S&P’s 11 key industry sectors, rising 1.8% as oil prices rose.
The biggest laggards were financials, down 1.7%, and healthcare, which was the biggest drag on the S&P 500, down 1.4%. The consumer staples sector declined 1.3%, while materials and real estate also closed down more than 1%.
Uncertainty about Fed policy, prolonged supply chain problems from the war in Ukraine and the COVID-19 lockdown in China have affected stocks, with the benchmark S&P 500 index falling nearly 14% year-on-year.
Luschini at Jenny Montgomery Scott said the stock’s upward move would be unlikely to break out before more clarity in the market on inflation and higher consumer prices as well as the ability to absorb Fed actions.
“There is nothing imminent, which is likely to catalyze all the concerns that have eroded the market to the level we are at now,” he said.
The benchmark US 10-year Treasury yield had climbed to 2.92%, the highest in two weeks.
At the end of the session, the meta platform collapsed and was the second biggest drag on the S&P after the chief operating officer. sheryl sandberg She said in a Facebook post that she would leave the company after 14 years. It closed with a decline of 2.6%.
Salesforce ended 9.9% after the enterprise software firm raised its full-year adjusted profit outlook and said it saw no material impact from an uncertain macroeconomic environment.
Victoria’s Secret climbed 8.9% after the lingerie retailer beat first-quarter profit estimates as costs fell.
The number of declining issues is greater than those going forward NYSE by a ratio of 1.64-to-1; On the Nasdaq, a 1.90-to-1 ratio favored the downside.
The S&P 500 posted a new 52-week high and 29 new lows; The Nasdaq Composite posted 29 new highs and 124 new lows.
On US exchanges, 11.45 billion shares changed hands, compared to an average of 13.25 billion for the past 20 sessions.