November 23, 2024

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Dow fell just before the Fed meeting

Dow fell just before the Fed meeting
At the low point of the session, the market was on track for its worst day From October 2020, Dow dropped more than 1,000 points. But the stock rebounded little by little.
With the closing hour still an hour away, The Dove (UNDUE) Some 580 points or 1.7% lower.
The S&P 500 (SPX), The broadest measure of the US stock market, fell 1.8%. The index is on the verge of ending the day in the slump area – 10% fall from its most recent high. Last week recorded the worst week since March 2020.

Every day for the past week, stocks have been bad in the final hours of trading, which could be a bad sign for the next day, said JD Kinahan, DT Ameritrate’s chief market strategist. That negative feeling continued Monday as well.

“After a rough start to stocks in 2022, investors are looking for reasons to anticipate a rebound,” Jeff Busbinder, a stock strategist at LPL Financial, said in an email comment.

“After doubling the incidence of infections in March 2020, with no more than 5% in 2021, stocks may need a break,” he added. “However, this tip did not feel very comfortable.”

Lots to digest

Investors also have a lot on their plate this week.

Revenue season has moved to bigger technology, which includes Microsoft (MSFT), IBM (IBM), Intel (INTC) And Apple (APL), Announces results this week.
Then there is the central bank meeting, which concludes with a policy statement on Wednesday and a press conference following it. As of Monday morning, market expectations for this week are that the Fed will keep interest rates close to zero for some time to come. CME FedWatch Tool. But for the next meeting, which is not until March, a quarter percentage point increase is expected to be above 80%.

Expectations are only one part of the game. By the end of 2021 the central bank may decide that inflation is too high and rates will rise further – or sooner.

Treasury yields, which monitor interest rate expectations, hit a one-week high on Monday. The 10-year bond gained 1.74% in the afternoon, after passing 1.8% for the first time before the outbreak last week.

As the central bank seeks to reduce inflation by normalizing its epidemic policies, the US economy Fall from the Omicron variant. Private sector manufacturing growth in the U.S. slowed in January as it put more pressure on the already-supplied supply chain and the current labor shortage. IHS Markit Flash is a code of joint purchasing managers.
To make matters worse, Investors are watching with interest The Situation in Ukraine Fears are growing that the country could be occupied by Russia.
News that the United States and the United Kingdom Withdrawal of some staff from local embassies The situation will be resolved soon and European stock markets have plummeted.

Commodity markets are feeling the pressure of rising tensions and analysts believe oil prices could rise if the situation escalates. However, on Monday afternoon, US oil prices fell 2.1% to $ 83.31 a barrel.

– Julia Horowitz of CNN Business contributed to this report.