Home Business US stocks remain sharply lower in the afternoon

US stocks remain sharply lower in the afternoon

12
0

Shares fell sharply in early trading on Friday and continued to decline throughout the session. The major averages continued their recent downtrend, with the Dow falling to its lowest intraday level in more than a year.

The major averages rebounded from their worst levels in recent trading, continuing to post sharp losses. The Dow was down 626.93 points, or 2.1 percent, at 29,449.75, the Nasdaq was down 255.28 points, or 2.3 percent, at 10,811.53, and the S&P 500 was down 84.40 points, or 2.3 percent. interest to 3,673.59.

Anxiety about the world’s prospects economy to continue to weigh on Wall Street after aggressive interest rate hikes by central banks around the world.

Traders remain concerned that efforts by central banks to combat high inflation will push the global economy into recession.

The Federal Reserve raised interest rates by another 75 basis points earlier this week and has announced more rate hikes later this year.

While Fed forecasts point to a final cut in rate hikes by next year, traders are worried about the outlook for the global economy in the coming months.

Fed Chairman Jerome Powell will soon deliver opening remarks at the Fed’s Listening: Transitioning to a Post-Pandemic Economy event.

Fed Vice Chairman Lyle Brainard and Fed Chair Michelle W. Bowman are also due to moderate conversations at the Fed Listens event.

Energy stocks continued to post some of the market’s worst performances of the day amid a sharp drop in crude oil prices. Crude oil for November delivery fell $4.60 to $78.89 a barrel amid concerns about the outlook for demand.

Reflecting the sell-off in the energy sector, the Philadelphia Oil Service Index fell 8.7 percent, the NYSE Arca Oil Index fell 7.1 percent and the NYSE Arca Natural Gas Index fell 6.6 percent.

Gold stocks also fell sharply along with the price of the precious metal, sending the NYSE Arca Gold Bugs Index down 5.3 percent.

Concerns about a global recession are also contributing to significant weakness in steel stocks, with the NYSE Arca Steel Index down 4.8 percent.

Airline, financial and computer equipment stocks also saw significant weakness, falling along with most other major sectors.

In foreign trade, shares markets Asia-Pacific was mostly lower on Friday, with Japanese markets closed for a holiday. China’s Shanghai Composite fell 0.7 percent, while Australia’s S&P/ASX 200 fell 1.9 percent.

Major European markets also showed significant movements to the downside on the day. While France’s CAC 40 index fell 2.3 percent, Britain’s FTSE 100 index and Germany’s DAX index fell 2.0 percent.

In the bond market, Treasuries turned positive during the session after initial weakness. After that, the yield on the benchmark 10-year bond, which moves against its price, fell 3.7 basis points to 3.671 percent.

For comments and feedback, please contact: editorial@rttnews.com

Business news



This article is first published on Source link

Previous articleThe 58th edition of Filo Italy ends on a high note
Next articleFord supply chain issues include blue oval badges for F-series pickups