S&P 500 descends on technology lane as strong economic data causes Fed jitters By Investing.com

© Reuters

By Yasin Ebrahim

Investing.com – The S&P 500 tumbled on Tuesday, as data pointed to continued strength in the labor market and consumer expectations bolstered the course of monetary policy tightening.

At 15:56 (Brasília time), the was down 1.39%, the was down 1.18%, or 379 points, the was down 1.61%.

unexpectedly returned to record levels in July, and topped estimates to reach the highest level since May, adding more credibility to recent messages from the Fed that most needs to be reduced to slow the economy and reduce inflation.

The Chairman of the New York Federal Reserve, , continued the Fed’s recent conversation, saying that with inflation forecast to be between 2.5% and 3% next year, interest rates may need to go up “a little or a little bit.” little” above 3.5% to cool price pressures.

Treasury yields continued to raise aggressive bets on rising rates, keeping rate-sensitive growth sectors of the market in the line of fire.

CHECK: Federal Reserve Interest Rate Monitor

Big tech companies were led by a 1.8% drop in Apple (NASDAQ:) (BVMF:), while semiconductor stocks surged to recent lows after Citi warned the sector could fall another 25% under pressure. by lower demand and inventory overloads.

Energy also played a big role in the broader market downturn, driven by a decline in oil prices, as Russia pulled back against expectations that OPEC+ was considering production cuts, Russian media TASS reported, citing a source. not identified.

APA Corporation (NASDAQ:), Baker Hughes (NASDAQ:) and Halliburton Company (NYSE:) are down more than 5%.

On the earnings front, retailers remain in focus after better-than-expected quarterly results from best buy and Big Lots.

Best Buy (NYSE:) rose more than 2% better-than-expected as discounts and cost-cutting efforts boosted results.

Big Lots (NYSE:) gained more than 10% after reporting a smaller-than-expected loss as sales came in at Wall Street estimates. The retailer said it expects to “continue significant promotional activity” with a gross margin rate in the mid-1930s.

Baidu (NASDAQ:) (BVMF:), meanwhile, is down more than 7%, despite reporting better than expected and guidance that praised a rebound in demand and sales.

In other news, Bed Bath & Beyond Inc (NASDAQ:) cut earnings to trade about 8% lower ahead of its strategic and business update on Wednesday. The stock, however, has doubled this month as the appetite for meme stocks appears to be back in vogue.

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