sunny.png
Thursday October 6th, 2022 7:04PM

Wall Street points lower a day after Fed's rate hike

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Wall Street is poised to give back some of the previous day's gains when markets open Thursday, one day after the Federal Reserve raised its key interest rate by half a percentage point as it attempts to tamp down the worst inflation in 40 years.

Futures for the Dow industrials lost 0.5% and the S&P 500 slid 0.6%. On Wednesday, the S&P 500 gained 3% for its biggest one-day increase in two years, while the Dow jumped 2.8% and the Nasdaq composite climbed 3.2%.

Federal Reserve Chairman Jerome Powell on Wednesday downplayed the likelihood of bigger interest rate hikes following the U.S. central bank’s biggest increase in two decades, giving anxious markets a boost after April's slump.

“The Fed continues to try and orchestrate a soft landing while tackling high levels of inflation,” said David Chao of Invesco in a report.

The Fed raised its key rate to a range of 0.75% to 1%, the highest point since the coronavirus pandemic struck two years ago. That increase, double its usual rate hike, follows the central bank’s quarter-point increase in March.

Powell’s comments appeared to be aimed at easing fears the Fed, which was accused of reacting too slowly as inflation surged last year, might be headed for an unusually large rate hike of three-quarters of a percentage point at its June meeting.

Investors worry about whether the Fed can extinguish inflation without pushing the economy into a downturn.

The Fed announced details of how it will start reducing its holdings of Treasury debt and mortgage-backed securities. The central bank has been buying bonds to pump money into the financial system and push down long-term interest rates.

London and Frankfurt opened higher on their first trading day since Powell's comments. Shanghai and Sydney advanced while Hong Kong ended lower. Markets in Japan and South Korea were closed for holidays.

Also Thursday, the Bank of England raised its key interest rate to the highest level in 13 years, its fourth rate hike since December as U.K. inflation runs at 30-year highs. Its Monetary Policy Committee voted 6-3 to lift the rate that the Bank of England pays other banks by a quarter-percentage point, to 1%.

In midday trading, the FTSE 100 in London jumped 1.6%, Frankfurt's DAX surged 1.6% and the CAC 40 in Paris added 1.9%.

In Asia, the Shanghai Composite Index gained 0.7% to 3,067.76 while Hong Kong's Hang Seng lost 0.4% to 20,793.40 after spending most of the day in positive territory.

Sydney's S&P-ASX 200 advanced 0.8% to 7,364.70 and India's Sensex gained 0.3% to 55,854.82. New Zealand gained while Singapore and Bangkok declined.

In energy markets, benchmark U.S. crude picked up 53 cents to $108.34 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $5.40 to $107.81 on Wednesday. Brent crude, the price basis for international oils, advanced 81 cents to $110.95 per barrel in London. It surged $5.17 the previous session to $110.14.

Twitter rose more than 2% in premarket trading after billionaire Elon Musk strengthened the equity stake of his offer to buy social media platform. Musk secured commitments of more than $7 billion from a range of investors, including Oracle co-founder and Tesla board member Larry Ellison. Musk initially was set to receive $12.5 billion in margin loans to help fund the deal, but is now cutting that amount in half, to $6.25 billion.

Etsy tumbled more than 12% in off-hours trading after the online craft and accessory marketplace lowered its second-quarter outlook.

The dollar climbed to 129.97 Japanese yen from Wednesday's 128.87 yen. The euro declined to $1.0552 from $1.0613.

  • Associated Categories: Associated Press (AP), AP National News, Top General short headlines, AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Wall Street points lower a day after Fed's rate hike
Wall Street was poised to give back some of the previous day’s gains when markets open Thursday, one day after the Federal Reserve raised its key interest rate by half a percentage point as it attempts to tamp down the worst inflation in 40 years
8:31AM ( 7 minutes ago )
Alabama's new transgender care felony faces federal test
Alabama’s law criminalizing the use of gender-affirming medications to treat transgender youth now faces a federal test
8:13AM ( 25 minutes ago )
OPEC+ opens oil taps gradually as Russian war roils markets
OPEC and allied oil-producing countries have decided to stick to a modest increase in production, even as Europe’s proposed phaseout of Russian oil threatens to yank millions of barrels off a global market already thirsty for crude
8:04AM ( 33 minutes ago )
Associated Press (AP)
Bank of England raises key rate to highest level in 13 years
The Bank of England has raised its key interest rate to the highest level in 13 years
7:40AM ( 58 minutes ago )
Bank of England raises interest rate to highest in 13 years
The Bank of England has raised its key interest rate to the highest level in 13 years
7:09AM ( 1 hour ago )
Ukraine repels Russian attacks; Mariupol plant battle rages
Ukraine’s military says that it recaptured some areas in the south and repelled Russian attacks in the east
7:09AM ( 1 hour ago )
AP Business
World stocks rise after Fed chair downplays bigger rate hike
Global stocks are higher after the Federal Reserve chairman downplayed the likelihood of bigger interest rate hikes following the U.S. central bank’s biggest increase in two decades
5:33AM ( 3 hours ago )
Russian war, China lockdowns roil oil markets as OPEC+ meets
Oil markets have been fluctuating over fears of lost supplies from Russia because of the war in Ukraine
5:28AM ( 3 hours ago )
Live updates | French ecology minister confident in oil ban
France’s ecology minister says she is confident that the European Union’s 27 nations will quickly agree to a proposed ban on oil imports from Russia
4:23AM ( 4 hours ago )
AP Business - Economy
Biden showcases deficit progress in bid to counter critics
President Joe Biden is highlighting new figures showing the government’s red ink will grow less than expected this year and the national debt will shrink this quarter as he tried to counter criticism of his economic leadership and growing dismay over inflation going into midterm elections that will decide control of Congress
2:02PM ( 18 hours ago )
Wall Street points toward gains ahead of Fed rate decision
Wall Street headed toward gains before the market opened Wednesday as investors waited for the Federal Reserve to announce another expected interest rate hike
8:16AM ( 1 day ago )
Sri Lanka foreign reserves at record low, politics in crisis
Sri Lanka’s finance minister says the South Asian country's economy is in dire straits with its usable foreign reserves down to less than $50 million
5:58AM ( 1 day ago )
AP Business - Financial Markets
Ukraine repels some attacks but combat rages at steel mill
Ukrainian forces say they repelled Russian attacks in the east and recaptured some territory even as Moscow moved to obstruct the flow of Western weapons to Ukraine by bombarding rail stations and other supply-line targets across the country
3:57AM ( 4 hours ago )
Boston firefighters pull hurt worker from collapsed building
Firefighters in Boston worked for more than three hours to rescue an injured construction worker after part of a historic power plant collapsed Wednesday while being redeveloped
7:22PM ( 13 hours ago )
Live updates | Commander: 'Bloody battles' at steel mill
The commander of the main defending force at the Azovstal steel mill in the strategic Ukrainian port city of Mariupol says Russian troops have broken into the territory of the mill
5:12PM ( 15 hours ago )
AP Business - Industries
EU leader calls for Russian oil ban in new set of sanctions
The European Union’s leader has called on the 27-nation bloc to ban oil imports from Russia in a sixth package of sanctions targeting Moscow for its war in Ukraine
7:17AM ( 1 day ago )
Live updates l Houchin wins GOP Indiana congressional race
Former state Sen. Erin Houchin has won the crowded Republican primary for an open congressional seat from a solidly GOP district in southern Indiana
10:18PM ( 1 day ago )
EXPLAINER: What's the latest in Russia's dance with default?
Russia's debt drama is far from over
7:49PM ( 1 day ago )
AP Business - Financial Services
Alabama's new transgender care felony faces federal test
Alabama’s law criminalizing the use of gender-affirming medications to treat transgender youth now faces a federal test
8:13AM ( 25 minutes ago )
OPEC+ opens oil taps gradually as Russian war roils markets
OPEC and allied oil-producing countries have decided to stick to a modest increase in production, even as Europe’s proposed phaseout of Russian oil threatens to yank millions of barrels off a global market already thirsty for crude
8:04AM ( 33 minutes ago )
WHO: Nearly 15M deaths associated with COVID-19
The World Health Organization is estimating that nearly 15 million people were killed either by the coronavirus or by its impact on overwhelmed health systems in the past two years, more than double its official death toll
8:02AM ( 35 minutes ago )
Live updates | New gas pipeline reduces dependence on Russia
A 500-million-euro ($530 million) Lithuanian-Polish natural gas transmission pipeline was inaugurated Thursday, completing another stage of regional independence from Russian energy sources
8:00AM ( 37 minutes ago )
The AP Interview: Belarus admits Russia's war 'drags on'
Belarus’ authoritarian President Alexander Lukashenko is defending Russia’s invasion of Ukraine in an interview with The Associated Press, but he said he didn’t expect the 10-week-old conflict to “drag on this way.”
7:57AM ( 40 minutes ago )