Stock Market Today: Dow ends the wild ride in red as bears consolidate their grip

Stock Market Today: Dow ends the wild ride in red as bears consolidate their grip

Written by Yassin Ibrahim – The Dow slid further into bear market territory on Tuesday, as investors continued to digest a flurry of rhetoric from Federal Reserve members pointing to an interest rate hike that many fear could push the economy into recession.

It fell 0.4 percent, or 125 points, and fell 0.2 percent, fell 0.1 percent, and fell to its lowest level in nearly two years on the day. All three major averages fell deeper into the bear market territory.

Technology played a dominant role in market sentiment as the strong start in dip buying action was offset by higher Treasury yields as investors digested data pointing to a stronger consumer.

Apple Inc (NASDAQ 🙂 pulled back from session highs to end the day just above the flat line, while Alphabet Inc Class A (NASDAQ 🙂 and Microsoft (NASDAQ :)) pared gains to close in the red.

Meanwhile, Twitter (NYSE:) is up 1% after Twitter’s attorney rescheduled Elon Musk’s filing from October 6-7.

Wedbush said the delay comes ahead of a trial, scheduled for October 17, that will decide “the ultimate fate of Twitter’s $44 billion deal.” “Twitter’s stock will continue to trade unlike deals as the long and ugly courtroom battle now begins in the Delaware courts,” she added.

Data showing strong consumer confidence reinforced expectations that the Federal Reserve is likely to continue on the path and raise its benchmark rate above 4% by the end of the year.

It rose to 108.0 in October from 103.68 in September, beating economists’ expectations for a reading of 104.5.

READ ALSO :   Al Gore sees the world at a 'tipping point' for climate action

Consumer sentiment is a leading indicator of consumer spending, which plays a major role in overall economic activity.

Pantheon Macroeconomics said the recovery in consumer confidence, which has been driven by a drop in gas prices, “may not continue as people absorb the blow from the recent drop in stock prices and recent hikes in federal interest rates, with the promise of more to come.”

Louis Fed President James Bullard indicated Tuesday that the Fed has more work to do, calling for more rate hikes that may need to stay at a higher rate for some time to make sure we have an inflation problem. under surveillance.”

Minneapolis Fed President Neil Kashkari said the current pace of rate hikes was “appropriate,” and reiterated the Fed’s commitment to lower inflation.

Energy stocks recovered from a rout the day before, buoyed by a 2% rise in oil prices that rose on bets for supply disruptions in the US Gulf of Mexico as Hurricane Ian is expected to reach Florida on Wednesday.

Valero Energy Corporation (NYSE:), Marathon Petroleum Corp. (NYSE:), and Baker Hughes (NASDAQ) led the gains in energy.

Cruise line stocks including Carnival Corporation (NYSE:), Royal Caribbean Cruises (NYSE:), and Norwegian Cruise Line (NYSE:) have been boosted by news that Canada will end Covid-19 travel restrictions next month.

In other news, electric motorcycle maker LiveWire, a Harley-Davidson (NYSE:) subsidiary, which went public through a special purpose buyout firm, reversed gains on its debut to close down more than 12%.

The Latest

To Top