![]() Smaller rival Lowe's Cos Inc fell 5.1% ahead of its results next week. 1 domestic home improvement chain warned of weakening demand and issued a dour profit forecast for 2023. The semiconductor index was also impacted, dropping 3.3%.Įlsewhere, Home Depot Inc slumped 7.1% to a three-month low after the No. Higher yields typically weigh on growth stocks, whose valuations tend to be based on future profits that are discounted heavily as rates go higher. benchmark 10-year Treasury notes hit a fresh three-month high. The Dow Jones Industrial Average fell 697.1 points, or 2.06%, to 33,129.59, the S&P 500 lost 81.75 points, or 2.00%, to 3,997.34 and the Nasdaq Composite dropped 294.97 points, or 2.5%, to 11,492.30.Īmong those hit by Tuesday's widespread declines were big tech stocks, with Tesla Inc, Inc, Microsoft Corp and Google-parent Alphabet Inc all falling between 2.1% and 5.3%. ![]() Investors will look to the minutes detailing discussion at the Fed's last policy meeting, due out on Wednesday, for further clues on attitudes within the central bank on rates. "The market keeps looking for a dovish pivot, and they are just not going to get it," said Schleif. Such positivity makes equity markets susceptible to pull-backs though, when data undermines such expectations. ![]() stocks had an upbeat start to the year after their worst annual showing in more than a decade in 2022, as investors hoped the central bank's rate-hike cycle was nearing its end. "Today, the realization is that the Fed is not kidding around about higher for longer, and in fact it might be a little bit higher for a little-to-a-lot bit longer," said Carol Schleif, chief investment officer at BMO Family Office. With inflation still far from the Fed's 2% target, and the economy retaining much of its vigor, money market participants have been revising upwards where they see the Fed fund rates peaking - currently at 5.35% in July and staying near those levels throughout the year. ![]() The report added to a recent slew of economic data which has painted a picture of a resilient economy, which continues to perform against a backdrop of multiple rate-rises by the central bank in 2022 aimed at tamping down inflation. ![]()
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