Connect with us


Stocks fall, Dow shedding 700 points, erasing post-Fed rally




Placeholder while loading article actions

Stocks suffered sharp declines during the morning session on Thursday, signaling that investors are growing restless after the Federal Reserve announced its biggest rate hike since 1994.

The Dow Jones industrial average plunged more than 700 points, or 2.4%. The broader S&P 500 index fell 3%, while the tech-heavy Nasdaq fell 3.6%.

On Wednesday, central bank policymakers announced they would raise interest rates by 0.75%, their most aggressive move yet to control soaring inflation. Stocks surged thereafter, ending a five-day losing streak, with the Dow Jones jumping more than 300 points, or 1%; the S&P 500 climbing 1.5%; and the Nasdaq soared 2.5%.

Markets suffered heavy losses in the first half of 2022 as a volatile mix of inflation, shifting central bank policy, geopolitical upheaval and lingering global coronavirus concerns added to market uncertainty. The S&P 500 index remains in bearish territory, defined as a 20% decline from its most recent peak, while the Nasdaq is down about 30% year-to-date.

New jobless claims fell by 3,000 to a seasonally adjusted 229,000, according to new data released Thursday by the Labor Department, indicating that the number of Americans claiming unemployment benefits remained relatively flat for the year. A widely followed proxy for layoffs, the level of jobless claims will come under scrutiny for hints of a weakened labor market, as fears of a potential recession grow.

The Fed’s decision to raise interest rates was intended to cool the economy by dampening consumer spending. At higher rates, consumers will find prices for mortgages, auto loans and other financed purchases harder to come by. By discouraging people from spending their money, the Fed aims to temper demand, which would eventually force prices down and stabilize inflation.

But tinkering with interest rates can feel like a high-flying act.

Fed officials are scrambling to strike the right balance: lowering prices without slowing the economy too much, which can lead to mass layoffs and a recession, creating a potentially new set of problems on top of soaring price. Fed leaders have acknowledged that their more aggressive efforts to fight rising prices could cause a storm with harsher consequences.

We are not looking to put people out of work, of course. We never think too many people are working and fewer people need jobs, Federal Reserve Chairman Jerome H. Powell said Wednesday at a news conference following the decision. But we also believe that you really can’t have the kind of labor market that we want without price stability. We need to go back and establish price stability.

Downtrodden investors are also reacting to the central bank’s less optimistic projections. New figures released on Wednesday showed increased unemployment, reduced economic growth and inflation taking longer to subside.

The Fed expects the jobless rate to reach 3.7% by the end of the year and continue to rise to 3.9% in 2023, in anticipation of a slowdown in hiring and reduced consumer demand.

While growth is expected to be weaker, projections now call for an increase in the unemployment rate, said Bill Adams, chief economist at Comerica Bank. Still, Adams said if the slowdown turns into an outright recession, the Fed could reverse future rate hikes or end increases sooner than it had expected.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]