The Dow Jones Industrial Average closed slightly lower on Wednesday (Oct. 12) as investors continued to worry regarding inflation, high interest rates. and economic recession After the US Producer Price Index (PPI) rose in September. And the release of minutes from the Federal Reserve’s last meeting indicates that Fed officials agreed to continue tightening monetary policy to curb inflation. while investors are concerned that Fed’s drastic rate hike might put the US economy into recession.
- The Dow Jones Industrial Average closed at 29,210.85, down 28.34, or -0.10%.
- The S&P 500 index closed at 3,577.03, down 11.81, or -0.33%.
- The Nasdaq index closed at 10,417.10, down 9.09, or -0.09%.
New York Stock Exchange fell. The U.S. Department of Labor said its PPI, a measure of inflation on manufacturers’ spending, rose 0.4% in September from a month ago. The PPI rose 8.5 percent in September, above analysts’ forecast of 8.4 percent. from 8.7% in August.
The core PPI, excluding food and energy, rose 0.3% month-over-month. in line with analysts’ forecasts After gaining 0.3% in August and year-on-year, the core PPI rose 7.2 percent, below analysts’ forecast of 7.3 percent from 7.2 percent in August.
Markets were also under pressure following the release of minutes from the Fed’s September meeting indicating that Fed directors express concerns regarding high inflation. And many fear the Fed is doing too little to curb inflation. By the September meeting The Fed voted to raise interest rates by 0.75% for the third time in a row in an effort to cut inflation from a 40-year high.
Seven of the 11 S&P 500 stocks closed lower, led by utilities and real estate, down 3.42 per cent and 1.39 per cent, respectively, while financials were down 0.3 per cent, and energy were up 0.75 per cent.
PepsiCo jumped 4.2 percent on the back of a rise in annual revenue and profit forecasts, and Alco Corp jumped 5.3 percent following the report. The US government is considering limiting aluminum imports from Russia in retaliation for Russia’s escalating attacks on Ukraine.
Investors will keep an eye on the release of the US consumer price index (CPI) on Thursday for signs of inflation and the direction of the Fed’s interest rates.
In addition, investors will wait to see the release of the 3rd quarter results of US-listed companies. This will begin with earnings releases from major US banks on Friday (Oct. 14).
By InfoQuest News Agency (13 Oct. 65)
Tags: Dow, new york stock market
