Stock Market Today: The Dow is on a wild ride to end lower after the Federal Reserve raises interest rates

Stock Market Today: The Dow is on a wild ride to end lower after the Federal Reserve raises interest rates

Written by Yassin Ibrahim

Investing.com – The Dow closed lower on Wednesday, despite swinging sharply between gains and losses as the Federal Reserve raised interest rates and raised its forecasts due to more rate hikes indicating a higher period for longer rates.

It fell 1.7% or 522 points, fell 1.8%, and fell 1.7%.

The Fed rates 0.75% and indicated that there is more room for the front-loading rate to rise after rates are expected to reach around 4.4% by the end of the year, well above the previously expected 3.8%.

β€œWe have just moved to the very, very lower level of what might be limiting [territory]”In my view, there are ways to go,” Powell said Wednesday after the rate hike.

The Fed also predicted that a recession could be avoided despite its need to speed up interest rate hikes to control inflation. But Jefferies economists noted, “It’s hard to believe that the Fed would be able to push such a sensitive downturn in the economy onto a gradual path toward somewhat lower growth, slightly higher unemployment, and targeted inflation.”

Bond markets have been quick to price the increased risks of a recession as the Treasury reversal continues. The excess amount has been flipped to over 50 basis points.

The prospect of longer interest rate hikes weighed on growth sectors of the economy as technology and consumer appreciation fell by more than 1%, with the latter sliding due to travel and leisure stocks amid heightened geopolitical tensions.

Russian President Vladimir Putin has announced the partial mobilization of Russian citizens for a war in Ukraine that will likely end any hopes of ending the conflict sooner rather than later.

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Caesars Entertainment Corporation (NASDAQ) declined 8%, Las Vegas Sands Corp (NYSE:) stock is down more than 6% and Carnival Corporation (NYSE:) is down just over 6%.

Meanwhile, big tech also faltered as Apple (NASDAQ πŸ™‚ pared its gains from the previous day, while Meta Platforms (NASDAQ :)) was down more than 2%.

stitch repair (NASDAQ:) It closed nearly 3% higher, although up more than 15% on the day despite reporting a wider-than-expected loss in the world as slowing global growth dampened consumer demand.

Wedbush lowered its price target on Stitch Fix to $5 from $7, warning that “the visibility to turn is very low at the moment,” though it said the company’s cheap valuation was “the only reason” it wasn’t more negative on a stock.

general mills Inc (NYSE:) shrugged off broader market concerns, rising more than 5% after raising its better-than-expected performance forecast.

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