The Dow Jones Industrial Average closed lower on Friday (August 19) amid fears that The US Federal Reserve (Fed) may raise interest rates by 0.75% for the third time at its September monetary policy meeting. This might cause the US economy to face a recession.
The Dow Jones Industrial Average closed at 33,706.74, down 292.30, or -0.86%, the S&P500 closed at 4,228.48, down 55.26, or -1.29%, and the Nasdaq closed at 12,705.22, down 260.13, or -2.01%.
in this week The Dow was down 0.2%, the S&P500 was down 1.2% and the Nasdaq was down 2.6%, all three of which were down weekly for the first time. After 4 weeks in a row
Nine of the 11 stocks in the S&P500 index closed lower, with the luxury and financial sectors down 2.1 percent and 2.02 percent respectively, while energy and health care shares rose slightly.
The S&P Banking Index fell 2.1% following gaining in the past.
Amazon.com, Apple and Microsoft fell and weighed the most on the S&P500 and Nasdaq, with rising interest rates likely to be a negative for tech and growth stocks. The stock value depends on future cash flows.
Rising US Treasury Yields Depress Markets The yield on 10-year bonds rose nearly 3% following Germany reported a record monthly producer price index (PPI).
Richmond Fed President Thomas Barkin said on Friday: Fed officials still have plenty of time to decide. How much to raise interest rates at the monetary policy meeting on September 20-21?
Losers, including home goods retailer Bed Bath & Beyond, fell 40.5 percent as billionaire investor Ryan Cohen sold the shares.
Investors will keep an eye on the Fed’s annual meeting in Jackson Hole, Wyoming, on Aug. 25-27, as the Fed is expected to signal stronger US economic conditions. interest rate direction including the Fed’s balance sheet (QT) reduction amid concerns regarding inflation. The theme for this year’s meeting is “Reassessing Constraints on the Economy and Policy”, with Fed Chairman Jerome Powell giving a speech on Aug. 26 at 10 a.m. or 9 p.m. . according to Thai time
