Stocks Continue Slide Ahead of Big Fed News

Dow dropped another 152 points
By Newser Editors and Wire Services
Posted Jun 14, 2022 3:38 PM CDT
Stocks Dip Deeper Into Bear Market
Traders work on the floor at the New York Stock Exchange in New York, Tuesday, June 14, 2022.   (AP Photo/Seth Wenig)

Wall Street closed mostly lower on Tuesday, a day after tumbling into a bear market on worries that high inflation will push central banks to clamp the brakes too hard on the economy. The S&P 500 slipped 0.4% after another day of unsteady trading. Investors are bracing to see how big of an interest rate hike the Federal Reserve will make on Wednesday., the AP reports. Gains by several big technology companies including Oracle helped send the Nasdaq composite index up 0.2%. The S&P 500 fell 14.15 points to 3,735.48. The Dow Jones Industrial Average fell 151.91 points, or 0.5%, to 30,364.83. The Nasdaq rose 19.12 points to 10,828.35.

Trading across markets Tuesday was calmer than during Monday's worldwide rout, which sent the S&P 500 down 3.9%. Stocks fell more than 1% in Tokyo and Paris but rose that much in Shanghai. A measure of nervousness among investors on Wall Street was easing, even as Treasury yields again pierced their highest levels in more than a decade. A measure of nervousness among investors on Wall Street was easing, even as Treasury yields again pierced their highest levels in more than a decade. Oracle soared 10.5% after it reported stronger revenue and earnings for its latest quarter than analysts expected. FedEx jumped 14.4% after it boosted its dividend payout by more than 50%.

Offering some support to the market was a report that showed inflation at the wholesale level was a touch lower in May than expected, though it remains very high. But economists said the data won’t keep the Federal Reserve from hiking its key interest rate on Wednesday by a larger-than-usual amount. Investors are now largely expecting the biggest increase since 1994, a hike of three-quarters of a percentage point, or triple the usual amount. A week ago, such a mega-increase was seen as only a remote possibility, if one at all. But a market-bludgeoning report Friday on inflation at the consumer level has seemingly pinned the Fed into getting more aggressive. It showed inflation for the consumer price index got worse in May, instead of slowing as hoped. (More stock market stories.)

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