Live Stock Updates: Stocks Shaken as 10-Year Treasury Yield Rises, Homebuilders in Focus

Live Stock Updates: Stocks Shaken as 10-Year Treasury Yield Rises, Homebuilders in Focus

Symbol Price Change %Change
me: DJI $30,822.42 -,139.40 -0.45
SP500 $3,873.33 -28.02 -0.72
Me:COMP $11,448.40 -,103.95 -0.90

US stocks fell on Monday as investors braced for another expected rate hike from the US Federal Reserve later this week.

On Friday, a stern warning from FedEx about rapidly worsening trends in the economy gave investors more cause for concern. The S&P 500 fell 0.7%, while the Nasdaq lost almost 1%. The Dow lost nearly half a percent.

The S&P 500 fell 0.7% to 3,873.33. It is now down 18.7% so far this year. The Dow Jones Industrial Average fell 0.5% to 30,822.42 and the Nasdaq slipped 0.9% to 11,448.40.

Housewares makers, generally seen as less risky investments, held up better than the rest of the market. Campbell’s soup rose 1.3%.

Higher interest rates tend to weigh on stocks, especially in the more expensive tech sector.

Technology stocks within the S&P 500 fell more than 26% for the year, and communications companies lost more than 34%. They are the worst-performing sectors within the benchmark index so far this year.

The housing sector is also suffering as interest rates rise. US long-term average mortgage rates rose above 6% this week for the first time since the 2008 housing crash. Higher rates could make an already tight housing market even more expensive for homeowners. home buyers.

This week’s government reports showed that prices for just about everything except gasoline continue to rise, the job market is still red-hot, and consumers continue to spend, all of which give arguments to Fed officials who say the economy can tolerate more rate increases. .

Markets have been skittish about stubbornly high inflation and the interest rate hikes being used to combat it. The fear is that the Fed and other central banks could overshoot their policy targets and trigger a recession. Most economists forecast the Fed will raise its primary interest rate another three-quarters of a point when central bank leaders meet this week.

“The fact is that hawkish expectations built on the impression of ‘hot under the hood’ US inflation means markets have good reason to brace for headwinds amid prospects for higher rates (for longer); and possibly ‘higher for longer’ USD (dollar) as well,” Mizuho Bank’s Vishnu Varathan said in a comment.

The S&P 500 sank 4.8% for the week, with much of the loss coming from a 4.3% drop on Tuesday following a surprisingly positive report on inflation. All major indices have now posted losses in four of the last five weeks.

Meanwhile, in Asia on Monday, Hong Kong’s Hang Seng lost 1.1% to 18,558.18 while the Shanghai Composite Index lost 0.6% to 3,106.57. Australia’s S&P/ASX 200 was down 0.1% at 6,732.20. In Seoul, the Kospi sank 1.2% to 2,355.31. j

Apan’s central bank meets on Wednesday and Thursday amid mounting pressure to counter a sharp drop in the yen, which is trading near 145 to the dollar after sharp gains in the value of the greenback. That has raised costs for businesses and consumers, who must pay more for imported oil, gas and other necessities.

However, the Bank of Japan has so far been adamant about maintaining an ultra-low benchmark rate of minus 0.1% in hopes of stimulating investment and spending.

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