Meta Drops 4.1% After Antitrust Accusation

EU accuses Facebook's parent company of distorting competition in online ads
By Newser Editors and Wire Services
Posted Dec 19, 2022 3:50 PM CST
Stocks Drop as Investors Brace for Higher Rates
A trader stands outside the New York Stock Exchange.   (AP Photo/Mary Altaffer)

Stocks closed lower on Wall Street as investors brace for higher interest rates from central banks to fight inflation. The S&P 500 fell 34.70 points Monday, or 0.9%, to 3,817.66. The Dow Jones Industrial Average fell 162.92 points, or 0.5%, to 32,757.54. The Nasdaq fell 159.38 points, or 1.5%, to 10,546.03. Meta, Facebook’s parent company, sànk after the European Union accused the company of breaching antitrust rules by distorting competition in online classified ads. Treasury yields moved higher and crude oil prices rose.

Markets have been slumping as hopes for a gentler Federal Reserve vanish amid stubbornly hot inflation, the AP reports. The central bank last week raised its forecast of how long interest rates have to stay elevated to cool inflation that has been hurting businesses and threatening spending. The European Central Bank also warned that more rate hikes are coming. Technology companies and retailers were among the biggest losers Monday. Microsoft fell 1.7% and Home Depot was 1.9% lower.

Investors have several economic reports to review this week as they try to determine the continuing path of inflation. The National Association of Realtors delivers its November tally of US home sales Wednesday. Home sales have been falling, but prices in the housing market have remained strong. The Conference Board will release its consumer confidence report for December on Wednesday. Consumer confidence and spending has been another strong area of the economy, but inflation is starting to put a tighter squeeze on consumers. The government will release a closely watched monthly snapshot of consumer spending on Friday, the personal consumption expenditure price index for November. The report is monitored by the Fed as a barometer of inflation.

(More stock market stories.)

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