2023-06-20 15:47:50
US stocks
Wall Street’s main indexes fell on Tuesday, as better-than-expected housing data fueled fears of an interest rate hike by the US Federal Reserve, while Tesla shares rose following electric car company Rivian agreed to adopt its charging standard.
The rate of construction of single-family homes in the United States rose in May, to its highest level in more than a year, and permits issued for future building also rose, indicating that the housing market is on the mend.
Sam Stovall, chief investment strategist at CFA Research, said, “We’ve seen data from housing and building permits that are much stronger than expected, and the economy still appears to be stronger than expected, despite all the speculation regarding a potential recession.”
Traders now see a 74.4 percent chance, on the CME FedWatch Index, that the Fed will raise interest rates by 25 basis points in July.
Markets await comments from Federal Reserve Vice Chairman Michael Barr later in the day and Federal Reserve Chairman Jerome Powell’s biannual monetary policy testimony before the US House of Representatives Finance Committee on Wednesday.
US markets ended lower last Friday, as comments from Federal Reserve officials dampened optimism that the central bank is nearing the end of strong interest rate increases.
Market movements
The Dow Jones Industrial Average fell 312.03 points, or 0.91 percent, to 33,987.09 points, by 15:25 GMT.
The Standard & Poor’s 500 Index declined by 35.13 points, or 0.79 percent, at 4,374.71 points, and the Nasdaq Composite Index fell 100.83 points, or 0.73 percent, to 13,589.53 points.
Tesla shares rose 1.3%, following Archyde.com reported that Rivian Automotive had agreed to certify Tesla’s charging standard, adding momentum to the electric car giant’s attempt to position its own vehicle charging standard as a major and desirable industry standard.
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Eight of the 11 subsectors in the S&P 500 were in the red, with the energy index declining, and the price-sensitive real estate sector down 1.4 percent.
PayPal shares rose 2.6 percent following KKR & Co agreed to buy up to 40 billion euros ($43.71 billion) of the payments company’s “buy now, pay later” loans in Europe.
Shares of “Nike” fell by 3 percent following the bank Morgan Stanley pointed to the risks of a decline in the company’s profit margin due to the glut of inventory.
Shares of US-listed Chinese companies fell, including Alibaba Group by 4.77 percent and JD by 7.4 percent, as China cut its benchmark lending rates less than expected.
Alibaba Group also said that Daniel Zhang will step down as CEO and chairman of the board to focus on the company’s cloud services division.
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