Finance Inquirer
No Result
View All Result
Monday, July 4, 2022
  • Login
  • Home
  • Business
  • Technology
  • Finance
  • Stock Market
  • Submit a News Releases
Subscribe
Finance Inquirer
  • Home
  • Business
  • Technology
  • Finance
  • Stock Market
  • Submit a News Releases
No Result
View All Result
Finance Inquirer
No Result
View All Result
Home Business

US stock extend decline as investors prepare for a potential 75 basis point rate hike from the Fed

Tom Hagler by Tom Hagler
15.06.2022
in Business
US stock extend decline as investors prepare for a potential 75 basis point rate hike from the Fed
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

Trader at NYSEA trader works at the New York Stock Exchange NYSE in New York, the United States, on March 9, 2022.

Michael Nagle/Xinhua via Getty

  • The S&P 500 extended its two-day decline to 5% on Tuesday as investors prepare for the Fed’s Wednesday meeting.
  • The Fed is expected to raise interest rates by 75 basis points, ahead of prior expectations for just a 50 basis point hike.
  • Tuesday’s sell-off solidifies the S&P 500’s bear market, which it officially entered on Monday.

US stocks traded mostly lower on Tuesday, extending their two-day decline to about 5% as the S&P 500 solidified its new bear market regime. 

The heightened volatility in the stock market comes as investors fret about an expected sizable increase in interest rates on Wednesday when the Federal Reserve concludes its meeting of the Federal Open Market Committee. 

The Fed was previously expected to raise interest rates by 50 basis points, but following Friday’s hot CPI inflation report, the central bank is now expected to raise interest rates by 75 basis points. Though, there’s no telling if the interest rate hike will help cool inflation, which is mainly being driven by supply side constraints, rather than demand.

Meanwhile, those higher interest rates could have a chilling effect on the economy and push mortgage rates to levels not seen in many years.

Here’s where US indexes stood at the 4:00 p.m. ET close on Tuesday:

  • S&P 500: 3,735.68, down 0.37%
  • Dow Jones Industrial Average: 30,364.83, down 0.5% (151.91 points)
  • Nasdaq Composite: 10,828.35, up 0.18%

Goldman Sachs is now warning investors that the chances of a US recession are on the rise as the Fed is likely to hike interest rates by 75 basis points at its next two meetings. Traders now expect the Fed to hike rates to close to 4% in 2023.

But perhaps what’s worse than high inflation, and even a recession, is a prolonged period of stagflation, which the Fed is trying to prevent with its interest rate hikes. Over 80% of investors now expect stagflation to shock the stock market within the next year, according to Bank of America.

Amid the ongoing chaos in the cryptocurrency market, with bitcoin briefly falling below $22,000 on Tuesday, Tether’s stablecoin barely lost its dollar peg again. Tether’s stablecoin hit $0.9975 after the Celsius crypto network halted withdrawals over the weekend.

Coinbase stock fell on Tuesday after the company was downgraded by JPMorgan, citing the broad decline in the cryptocurrency market. Separately, Coinbase announced a round of deep job cuts, impacting about 18% of its workforce. 

Bitcoin losses piled up for companies that added the cryptocurrency to its balance sheet. MicroStrategy, Tesla, and Block have a combined unrealized loss of more than $1 billion in bitcoin, based on Tuesday’s prices. 

West Texas Intermediate crude oil fell as much as much as 2.87% to $117.46. per barrel. Brent crude, oil’s international benchmark, dropped as much as 2.12% to $119.68.

Bitcoin rose as much as 1.47% to $22,393. Ether prices jumped as much as 3.94% to $1,218.

Gold fell as much as 1.39% to $1,806.30 per ounce. The yield on the 10-year Treasury surged 13 basis points to 3.50%. 

Read the original article on Business Insider businessinsider?d=yIl2AUoC8zA businessinsider?i=RwPmbH1vtjc:urHWoZ-YMO businessinsider?i=RwPmbH1vtjc:urHWoZ-YMO businessinsider?d=qj6IDK7rITs businessinsider?i=RwPmbH1vtjc:urHWoZ-YMO

  • Trending
  • Comments
  • Latest
Boeing and Pfizer are among the companies and trade groups to have donated $8 million to Republicans who voted against certifying Biden’s election victory, a report says

Boeing and Pfizer are among the companies and trade groups to have donated $8 million to Republicans who voted against certifying Biden’s election victory, a report says

04.01.2022
Twitter Suspends mRNA Inventor Dr. Robert Malone

Twitter Suspends mRNA Inventor Dr. Robert Malone

29.12.2021
Anesthesiologist Salary in the USA.

Anesthesiologist Salary in the USA

24.01.2022
3 planes are flying potatoes into Japan to help tackle the country’s shortage of fries, which has caused McDonald’s to ration servings

3 planes are flying potatoes into Japan to help tackle the country’s shortage of fries, which has caused McDonald’s to ration servings

29.12.2021
Take the best photos of your life with the new vivo Y76 5G now available

Take the best photos of your life with the new vivo Y76 5G now available

Complete your Christmas shopping with up to 75% off on devices at vivo’s Big Christmas Sale on Shopee

Complete your Christmas shopping with up to 75% off on devices at vivo’s Big Christmas Sale on Shopee

AirPods 3 vs AirPods 2 – What’s the Difference?

AirPods 3 vs AirPods 2 – What’s the Difference?

Want to be a content creator? Here are 5 valuable tips from today’s top Pinoy online celebrities

Want to be a content creator? Here are 5 valuable tips from today’s top Pinoy online celebrities

Florida offers new training for teachers that says it was a ‘misconception’ that ‘the Founders desired strict separation of church and state’: report

Florida offers new training for teachers that says it was a ‘misconception’ that ‘the Founders desired strict separation of church and state’: report

03.07.2022
A Florida state board removed a pediatrician who advocated that children under 5 get the COVID-19 vaccine

A Florida state board removed a pediatrician who advocated that children under 5 get the COVID-19 vaccine

03.07.2022
24 great gift ideas for your best friend, whether they’re a foodie, movie buff, or always outdoors

24 great gift ideas for your best friend, whether they’re a foodie, movie buff, or always outdoors

03.07.2022
27 best movies starring the cast of ‘Stranger Things,’ according to critics

27 best movies starring the cast of ‘Stranger Things,’ according to critics

03.07.2022

Recent News

Florida offers new training for teachers that says it was a ‘misconception’ that ‘the Founders desired strict separation of church and state’: report

Florida offers new training for teachers that says it was a ‘misconception’ that ‘the Founders desired strict separation of church and state’: report

03.07.2022
A Florida state board removed a pediatrician who advocated that children under 5 get the COVID-19 vaccine

A Florida state board removed a pediatrician who advocated that children under 5 get the COVID-19 vaccine

03.07.2022

Categories

  • Business
  • Finance
  • News
  • Stock Market
  • Technology
  • Без рубрики

Site Navigation

  • Home
  • Contact Us
  • Submit a News Releases
Finance Inquirer

We offer multimedia features, easy channel navigation, strong social media presence and numerous engagement platforms that allow the readers to experience content anytime, anywhere, always.

No Result
View All Result
  • Home
  • Business
  • Technology
  • Finance
  • Stock Market
  • Submit a News Releases

© 2021 financeinquirer.com

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In