U.S. Stocks Muted as Investors Await Clarity on Rates From Fed
2022.08.24 17:34
By Liz Moyer
Investing.com — U.S. stocks were muted in light trading as investors await clarity on the next move in interest rates.
At 09:52 ET (13:52 GMT), the Dow Jones Industrial Average was down 11 points, or flat, while the S&P 500 was also flat and the NASDAQ Composite ticked up 0.1.%
The Federal Reserve doesn’t meet until next month to decide the next move on rates, but it is meeting this week at its annual conference in Jackson Hole, Wyo. Chair Jerome Powell is scheduled to speak on Friday and is expected to confirm the central bank’s focus on taming inflation.
Investors have been placing their bets on the Fed’s move in September, with some favoring a half-point interest rate increase and others forecasting a 0.75-point hike. Some are worried that the Fed will go too far in its quest to cool inflation, tipping the U.S. into a recession.
Economic data is feeding investor concerns. On Tuesday, new data showed that private-sector business activity slowed for the second month in a row, especially in services.
Meme stock favorite Bed Bath & Beyond Inc (NASDAQ:BBBY) jumped 18% on news it arranged a loan to build cash and pay down debt. Nordstrom Inc (NYSE:JWN), meanwhile, fell more than 17% after it cut its full year forecast, saying even higher-income shoppers are being choosier about their purchases.
Oil rose. Crude Oil WTI Futures was up 0.5% to $94.19 a barrel while Brent Oil Futures crude was up 0.4% to $100.62 a barrel. Gold Futures fell 0.3% to $1,756.
