Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

S&P 500, Nasdaq end lower; BoE comments add to market jitters late

Published 10/11/2022, 07:03 AM
Updated 10/11/2022, 04:52 PM
© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 7, 2022. REUTERS/Brendan McDermid

© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 7, 2022. REUTERS/Brendan McDermid

By Caroline Valetkevitch

NEW YORK (Reuters) - The S&P 500 and Nasdaq ended lower on Tuesday, with indications from the Bank of England that it would support the country's bond market for just three more days adding to market jitters late in the session.

Trading was volatile, with investors cautious ahead of key U.S. inflation data and the start of third-quarter earnings later this week.

The Dow ended higher, helped by Amgen Inc (NASDAQ:AMGN) shares, which jumped 5.7% after a report that Morgan Stanley (NYSE:MS) upgraded the drugmaker's stock to "overweight" from "equal weight."

All three major indexes fell in afternoon trading after Bank of England Governor Andrew Bailey told pension fund managers to finish rebalancing their positions by Friday when the British central bank is due to end its emergency support program for the country's bond market.

"What caused the latest downturn was an announcement the Bank of England was going to stop supporting the gilt (UK bonds) market in three days," said Randy Frederick, managing director, trading and derivatives at Charles Schwab (NYSE:SCHW) in Austin.

Earlier on Tuesday, the Pensions and Lifetime Savings Association urged the BoE to extend the bond-buying programme until Oct. 31 "and possibly beyond."

Growth and technology stocks underperformed as U.S. Treasury yields rose amid concern that U.S. inflation data this week will not stop the Fed's rapid hiking of interest rates. The S&P technology sector was down 1.5%.

The producer price index report is due Wednesday and consumer price index data is due Thursday.

The Dow Jones Industrial Average rose 36.44 points, or 0.12%, to 29,239.32, the S&P 500 lost 23.65 points, or 0.65%, to 3,588.74 and the Nasdaq Composite dropped 115.91 points, or 1.1%, to 10,426.19.

The Fed has been aggressively raising rates to curb inflation and is expected to continue with more increases into next year.

Stocks have been hit in recent weeks by worries about how aggressive the Fed may still need to be with hiking rates and the potential impact on the economy.

The S&P banks index was down 2.6% ahead of quarterly results from some major banks later this week. The reports are expected to kick off the third quarter reporting period for S&P 500 companies.

Adding to recent fears about the economy, the International Monetary Fund predicted a meager 1.6% growth in the U.S. economy this year.

Declining issues outnumbered advancing ones on the NYSE by a 1.50-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favored decliners.

© Reuters. A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 11, 2022. REUTERS/Brendan McDermid

The S&P 500 posted one new 52-week high and 104 new lows; the Nasdaq Composite recorded 33 new highs and 590 new lows.

Volume on U.S. exchanges was 11.65 billion shares, compared with the 11.73 billion average for the full session over the last 20 trading days.

Latest comments

maybe core cpi would have fallen significantly to 5 something. if true. fed could pause. let's hope so.
why is investing.com not deleting all these spam/scam/commercial jam messages in this forum? yikes. ip bans please!
yes I'm sick of it!! If they don't we move on..
It's an advertisement site and they make good money with it. Did you notice that you cannot really block these users?
 True but the messages can be posted for free :D So what is the commercial value of that?
lol. What a joke.
This website is bot invested propaganda machine
S&P500 drop from 3639.18 to 3595.43 which is a support, tomorrow’s news could push the price down. Since most of wall street investors withdraw their investments. Die to FED interest rate decission, which will lead the countries economy to recession. Folks tomorrow, will be a bubble bust the s&p500 will break through support after FOMC minutes release 🇿🇦🇿🇦🇿🇦🇿🇦🇿🇦🇿🇦🇿🇦🇿🇦🇿🇦🇿🇦🇿🇦
So no stock buybacks before end of year then? Or we joe consumers are being made to think this
LOL.. stocks are soaring. I guess the FED surprises you with their pumps as much as us
If only they would release their trades to the public. I'm certain they've been shorting the market since January, conflict of interest and insider trading rules be what may. Some are above the law
Magic show right on schedule today…PREDICTABLE LIKE THE SUN COMING UP
I am New bisnasman
they trying to hold the July 20 lows is literally a transparent manipulation? where are your ethics now fed?
 Phoney baloney. It happened, that is all there is to it. Resignation sike! They early retired, complete with taxpayer funded pension. SEC never did an investigation as they were requested to, so I'm curious how you are so certain no rules were broken.  Do you work for the Fed?
are you aware the u.s. president doesn't create ethic rules for the federal reserve?
  I was pointing out when things happened, not that the potus should be blamed.  But since you made that connection:  Are you aware Trump threatened to fire/demote Fed members who didn't do what he wished?  If he was willing to threaten, he could've threatened for better ethics .rules, but that wasn't his priority
manipulated markets today
you omitted Reuters' favorite word "fear"
Fear is mentioned in this article.
Of course. Fear is a big part of Democrat's Marxist playbook in action.
So I guess you've ridden it down 20% with your bravery? I forgot, republicans are only afraid of brown people and *******
Perhaps articles on the plight of Credit Suisse and BOE bond buying might give investors a more accurate direction on where markets are heading?
Release the kraken but let me get out first from my calls
Don't get in too much of a hurry. We're probably ready for another two day rally, in an attempt to mitigate losses.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.