U. S. stock market falling due to renewed concerns about rate
2023.02.15 11:56
U. S. stock market falling due to renewed concerns about rate
By Ray Johnson
Budrigannews.com – After stronger-than-expected retail sales data highlighted a resilient U.S. economy, which may provide more room for the Federal Reserve to raise interest rates, Wall Street was scheduled to open lower on Wednesday.
Retail sales increased by 3% in January, according to a Commerce Department report, driven by vehicle and other goods purchases. Reuters polled a group of economists and found that sales would rise by 1.8%.
Peter Cardillo, chief market economist at Spartan Capital Securities in New York, stated, “These numbers (retail sales) beat consensus by a long shot and it just shows that the consumer is still in a good spot.” These numbers beat consensus by a long shot.
“Due to that, yields are returning and the dollar is strengthening, as you can see. Evidently, the notion that the Fed will continue to raise interest rates will only be strengthened if this trend continues.
After data showed that consumer prices in the United States rose faster in January, expectations increased that the United States central bank would raise the policy rate at least twice more this year to a range of 5-5.25%.
Last week, investors were discouraged from investing in riskier assets like equities as a result of hawkish remarks made by Fed policymakers, which halted a rally in U.S. stocks this year.
Despite this, the S&P 500 is up 7.7% so far this year, after a slump of 19.4% in 2022 when investors bought damaged growth stocks and the earnings season was better than expected.
According to data from Refinitiv, nearly 70% of the S&P 500 companies that have reported results thus far have surpassed profit expectations.
We were down 82 points, or 0.24 percent, 11.25 points, or 0.27 percent, and 25.5 points, or 0.2 percent, at 8:51 a.m. ET.
After Warren Buffett’s Berkshire Hathaway (NYSE:) bought shares of Taiwan Semiconductor Manufacturing Co. (TSMC), which are listed on the U.S. stock exchange, Inc. reduced the chipmaker’s stake.
After the companies posted results that beat forecasts due to the strong demand for travel, shares of Tripadvisor Inc. and Airbnb Inc. rose by more than 9% each.
NYSE: Devon Energy fell 7.4% as a result of the shale oil producer missing Wall Street estimates for fourth-quarter profit due to lower production and higher costs as a result of the severe cold weather in the United States.
Kraft Heinz, Inc. In spite of its high prices, demand for its packaged meals and condiments helped the ketchup manufacturer beat quarterly sales estimates, resulting in a 0.3% increase.
