The Dow Jones Industrial Average closed more than 300 points on Tuesday (Sept. 20) as investors worried the Federal Reserve will raise another major interest rate at its meeting that ends in the day. The market is also pressured by signs that major US companies are being hit hard by inflation.
The Dow Jones Industrial Average closed at 30,706.23, down 313.45, or -1.01%, the S&P500 closed at 3,855.93, down 43.96, or -1.13%, and the Nasdaq closed at 11,425.05, down 109.97, or -0.95%.
Investors are keeping an eye on the outcome of the Fed meeting, which will be released today in US time. or in the early morning of tomorrow in Thai time including the Fed’s policy interest rate forecast (Dot Plot) and economic outlook, inflation. and the unemployment rate, which the Fed committee will disclose following the meeting.
According to a survey conducted by CNBC, U.S. stock market analysts expect the Fed to raise interest rates by 0.75% at this meeting. And the Fed will continue to raise interest rates until it hit 4.26 percent in March 2023. The Fed is expected to keep rates at that level for nearly 11 months, the average analysts had expected. The Fed will keep interest rates unchanged for three months to two years.
In addition, analysts expect a 52 percent probability that the US economy will face a recession over the next 12 months. Due to the Fed’s use of monetary policy too tight. And it is expected that the Fed may take several more years. before it succeeded in keeping inflation under the 2% target.
The share price fell in all groups. led by real estate stocks The group was hit hard by rising interest rates, with Jones Lang LaSalle down 2.51% and Armada Hoffer Properties down 3.16 percent.
Ford Motor shares fell 12.32 percent, their worst single-day decline since 2011, following the company disclosed the inflation impact of up to $1 billion. which is higher than initially expected And revealed that the company had to postpone deliveries of some cars to the fourth quarter of this year due to the shortage of auto parts.
The news has also dragged shares of Ford’s rival car company down. That includes General Motors shares, down 5.6 percent.
Nike shares tumbled 4.47 percent following Barclays analysts downgraded Nike to “Equal weight” from “Overweight”, citing the impact of China’s measures. Lockdown to control the spread of COVID-19
US apparel retailer Gap fell 3.26 percent following the company announced 500 layoffs and canceled its annual earnings forecast. Due to the slowdown in sales and more stock in stock
For the US economic data reported last night. The US Commerce Department said Homebuilding starts jumped 12.2 percent in August to 1.575 million, the highest level in two months, from 1.404 million in July.
