The Dow Jones Industrial Average closed down more than 300 points on Thursday (Oct. 6) as markets were pressured by concerns that An accelerated rate hike by the US Federal Reserve (Fed) will push the US economy into recession. While investors are eyeing the release of US non-farm payrolls today.
The Dow Jones Industrial Average closed at 29,926.94, down 346.93, or -1.15%, the S&P500 closed at 3,744.52, down 38.76, or -1.02%, and the Nasdaq closed at 11,073.31, down 75.33, or -0.68%.
The Dow ended up dropping from 30,000 amid concerns regarding the economic impact of the Fed’s accelerating rate hikes. raise interest rates
Neil Cashcary, Minneapolis Fed President, said: The Fed is unlikely to slow its rate hikes in the foreseeable future. Until there is evidence that core inflation has slowed. There is currently little evidence that inflation has passed its peak. Meanwhile, he said the Fed’s rate hike might hurt financial markets. But for the Fed to make policy changes just to help the market. It’s not something that will happen easily.
While St. Louis Fed President James Bullard predicted that The Fed board may raise interest rates another 1.25% before the end of 2022 as inflation remains at a very high level.
Markets were also pressured by rising yields on the 10-year U.S. Treasury, as the bonds were used as a reference for global bond prices. including US mortgage interest rates The surge in yields on these bonds will give consumers less money to spend. while the cost of paying off mortgage loans increases And companies will face higher costs of debt settlement. causing these companies to reduce their investment and reduce dividend payments to investors
Ten of 11 stocks in the S&P500 closed in negative territory, led by real estate and technology stocks. Both are interest rate-sensitive stocks. Jones Lang LaSalle was down 1.13 percent, American Realty Investors was down 0.53 percent, Amazon was down 0.54 percent, and Microsoft shares were down. down 0.97% Indian stocks down 0.60%.
However, energy stocks rose once morest the market. Responded to the resolutions of the Petroleum Exporting Countries (OPEC) and its allies. or OPEC Plus to cut production by 2 million barrels per day Exxon Mobil was up 2.97 percent, Halliburton was up 1.95 percent, ConocoPhillips was up 1.47 percent and Chevron was up 1.84 percent.
Investors are eyeing the release of September’s non-farm payrolls in the United States today. While analysts predicted that The number of jobs will increase by just 265,000 in September. After rising 315,000 jobs in August The unemployment rate in September is expected to remain stable at 3.7%.
