US STOCKS-Wall St set to open lower after mixed economic data, hawkish Fed comments

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The Fed’s Bullard supports another rate hike

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Macy’s jumps at rising expectations

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Kohl’s downfall after pulling the annual forecast

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Futures down: Dow 1.14%, S&P 1.32%, Nasdaq 1.51%

(All prices update)

By Ankika Biswas and Amruta Khandekar

Nov 17 (Reuters) – U.S. stock indexes opened lower on Thursday as mixed economic data and hawkish comments from Federal Reserve officials raised concerns that the central bank will not ease its aggressive reaction to rising interest rates.

Softer-than-expected inflation data in recent days bolstered expectations of a smaller interest rate hike, but Wednesday’s strong trade data fueled fears that the Fed will may tighten monetary policy further.

The president of St. Louis Federal Reserve James Bullard on Thursday said that the increase in the exchange rate “had only a limited effect on inflation”, and the central bank needs to continue raising the rate. interest rate of at least one percent.

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Several other Fed officials in recent days have also emphasized the need to continue raising interest rates, albeit at a slower pace.

More balanced against the market, data showed that the number of Americans filing new claims for unemployment benefits fell last week despite a rise in layoffs in the technology sector, which indicates a still tight labor market.

Wall Street closed the previous session lower as a bleak outlook from Target Corp raised concerns about retailers heading into the holiday season.

“There are still thoughts about yesterday’s Target news … investors are trying to understand the weakness of the fourth and the impact on the company,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

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The S&P 500 rose 8% at the end of October on expectations of a smaller Fed, although the index is down 17% this year on fears of a recession caused by rising interest rates. interest rate.

Meanwhile, UK Chancellor of the Exchequer Jeremy Hunt on Thursday raised taxes on high earners and energy companies as part of his new plan to strengthen Britain’s finances, though he even said that the economy will slow down in the coming years.

As of 8:56 a.m. ET, Dow e-minis were down 384 points, or 1.14%, S&P 500 e-minis were down 52.5 points, or 1.32%, and Nasdaq 100 e-minis were down 177.5 points, or 1.51%. .

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Department store chain Macy’s Inc gained 8.0% and personal care products retailer Bath & Body Works Inc rose 19.2% in premarket trading after the companies raised their annual profit forecasts.

Kohl’s Corp fell 2.6% after it cut its 2022 sales and profit forecasts, blaming an uncertain economic outlook and the departure of its chief executive, Michelle Gass.

Shares of US-listed Alibaba Group Holding Ltd fell 2.1% after the Chinese e-commerce giant posted a smaller-than-expected rise in quarterly revenue.

Shares of Roku Inc fell 2.9% on the streaming platform’s plans to cut 200 jobs. (Reporting by Bansari Mayur Kamdar, Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli)

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