© Reuters.
Investing.com — U.S. stocks fell on Friday as technology stocks pushed the Nasdaq lower and broke an eight-week bullish swing.
As of 16:02 ET (20:02 GMT), it was down 219 points or 0.6%, while it was down 0.8% and 1%.
Recession fears have returned. Federal Reserve Chairman Jerome Powell, appearing before the House and Senate this week for his semiannual testimony on the economy, said more rate hikes are likely in the coming months, even though he was halted. another rate hike last week.
Futures markets see a greater than 70% chance that rates will rise another quarter of a percentage point by the end of July.
Powell’s hawkish attitude was countered by comments from other Fed officials. On Friday, the Atlanta Fed president said winning was the central bank’s top priority. “Lowering inflation is job number one, inflation is too high,” Bostic said.
He and Chicago Fed President Austan Goolsbee have talked about the importance of being patient to see how well the Fed’s actions have performed to date, as the effect of monetary policy may take some time to show up. manifest.
Richmond Fed Chairman Tom Barkin said he is not convinced inflation is on a steady path toward the Fed’s 2% target. “I’m still waiting for the fog to clear,” Barkin told reporters. journalists on Thursday.
San Francisco Fed President Mary Daly told Reuters two more rate hikes this year is a “very reasonable” projection. She added that given how quickly rates have already risen, it is prudent to move cautiously from here.
Key data will be released next week for investors to judge the Fed’s progress in controlling interest rates. The next release of first-quarter gross domestic product will be released on Thursday and the Fed’s preferred inflation gauge, the PCE, will be released on Friday.
Stocks move today
Shares of 3M Company (NYSE:) rose 0.4% after its $10.3 billion settlement with US public water systems to settle “chemicals forever” claims.
Shares of CarMax, Inc. (NYSE:) rose about 10% after the used-car retailer’s cost-cutting efforts helped it beat market expectations for earnings.
Shares of Starbucks Corporation (NASDAQ:) fell 2.5% on a possible strike by union workers next week. The union claims it has banned Pride Month decorations from its stores.
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