Renewed investor worries sprang up Wednesday over the threat of future interest rate hikes, sparked by stronger-than-expected economic data and price reports.
Higher Treasury yields added pressure to tech stocks and added to investor worry that the Federal Reserve will use recent stronger-than-expected economic data to justify pushing benchmark lending rates higher to squelch inflation. The yield on the 2-year Treasury note added as much as 6 basis points Wednesday.
The Institute for Supply Management's U.S. services index climbed to a six-month high in August, while the price segment ticked up to 58.9%, a report Wednesday showed. The ISM index's price barometer hit a four-month high. "Given the data, the Fed will most likely deliver a hawkish pause at the next meeting," said by Jeffrey Roach, chief economist at LPL Financial. "The hard data is not yet convincing enough to establish strong views about the subsequent meetings. Investors should still find opportunities in the market but it could be a bumpy ride."
While 93% of interest rate traders foresee no change at September's Federal Open Market Committee meeting, expectations of an additional interest rate hike at the November meeting rose above 40%, according to the CME FedWatch tool.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Wall St slides on renewed inflation worries, economic data in focusA recent uptick in oil prices has fueled fears of persistent inflationary pressures that could compel the Fed to keep rates higher.
Leer más »
Stock Market News Today: Dow Falls More Than 200 Points; AMC Stock in FocusLive coverage of what's moving stocks and other markets, including the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite
Leer más »
Wall Street is off to downbeat start following two weeks of gainsStocks fell on Wall Street as traders return from a long holiday weekend.
Leer más »
How China's slowdown could hit Washington and Wall StreetThe spillover from a slowing Chinese economy “cannot just be wished away,” said Josh Lipsky, a former State Department and IMF official who’s now the senior director of the Atlantic Council's GeoEconomics Center.
Leer más »
Watch these stocks ahead of a historically weak September on Wall StreetThese stocks have historically outperformed overall market weakness in September trading.
Leer más »
Business Highlights: UAW clashes with Big 3 automakers as strike deadline looms; Wall Street slipsBusiness Highlights: A summary of the day’s top stories in the business world.
Leer más »