Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Stock market today: Dow ends lower as Fed signals more hikes ahead

AuthorYasin Ebrahim
Published 06/14/2023, 04:22 PM
© Reuters

By Yasin Ebrahim

Investing.com -- The Dow closed lower Wednesday after the Federal Reserve delivered a widely expected pause, but forecast further hikes to come as inflation remains sticky.

The Dow Jones Industrial Average fell 0.7%, or 232 points, the Nasdaq rose 0.4% and the S&P 500 rose 0.1%.

The Fed now sees its terminal rate, or peak rate, at 5.6% at the midpoint in 2023, up from a prior forecast of 5.1% seen in March, suggesting two more hikes remain in play.

“For now, though, this is a more hawkish pause than we expected, and it strikes us as, well, pointless," Pantheon Macroeconomics said in a Wednesday note, suggesting that the Fed isn’t likely to have a clearer view on the economy by the July meeting as incoming data will be sparse.

”Only one round of inflation and labor market data will be released between now and the July meeting, and the unreliability of the monthly numbers means that policy decisions, in our view, should not be determined by such short runs,” it added.

Treasury yields, meanwhile, closed at the highs of the day to reflect the hawkish Fed outlook, forcing tech to give up gains, though dips appeared to find buyers as the sector was among the biggest gainers.

Semiconductor stocks underpinned tech as NVIDIA Corporation (NASDAQ:NVDA), Broadcom Inc (NASDAQ:AVGO), and Advanced Micro Devices (NASDAQ:AMD) closed in the green with the latter supported by reports that Amazon (NASDAQ:AMZN) is mulling using the AMD’s AI chips in its cloud business.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Health care, meanwhile, was the biggest drag on the market, paced by a slide in UnitedHealth (NYSE:UNH)Health and Humana (NYSE:HUM) amid concerns a rebound in elective surgeries following the Covid lull will boost rising costs.

United Health CEO Andrew Witty said Wednesday seniors were catching up on surgeries that they deferred during the pandemic and warned that second-quarter premium revenue spent on care may be at the upper end or moderately above expectations.

Energy dropped more than 1% after oil prices came under pressure on worries that further Fed hikes would hurt economic growth and oil demand.

Devon Energy Corporation (NYSE:DVN), Diamondback Energy Inc (NASDAQ:FANG) and Marathon Oil Corporation (NYSE:MRO) were among the biggest decliners.

Latest comments

the more I watch powell talk, the less respect I have for him. I really don't think he understands. He was all over the map in today's presser.
But yet the market climbed back some at end of day so what now see saw or hedge funds pushing this poop stain of a market higher again til July
Forcing tech to give up gains? What charts were you looking at bruh?
Last week, it was known as a skip. A pause is a period of no activity before a pivot. This is not a pause.
The Dow is a poor proxy. Use a broader measure.
The majority of the SP500 indexing depends on 7 megacaps whose weighting basically carries the whole index.
 This is true, I think that 90% of the market gains this year are entirely due to the pumping of just 7 stocks, Hedge funds basically use people's 401k's to pump the megacaps while they take out short positions before tanking the market.
nonsense. on the SP500 today 190 stocks advanced today regardless of weighting. That's not 7, 1697 on the Nasdaq.
Nvidia stock is up nearly 15,000% over the past 10 years and has a market cap over $1 trillion. It pumped this year not even on good earnings, but just expectations of growth because of AI. The P/Es of stocks this year are at levels that have consistently preceded recessions. TSLA is up around 150% YTD. Best of luck to those buying this market prior to interest rates going 7% and a presidential election. Inflation has been over 25% just since Biden took office, and is still over 5% over the past year despite current rates. Inflation has outpaced wages for 26 months straight now.
If bIG guY would stop craving that 10 percent bankrupting the usa for him his fam and huNter this country might be back on track...
until additional rate hikes are being implemented, I can't see inflation going down that fast. Especially now that companies will want to anticipate for tougher times ahead
That is a really deceitful headline.  HOW ABOUT MENTIONING THAT THE FED SAID IT WAS NOT DOING A RATE HIKE, -THIS- TIME, AND THAT IT IS CONSIDERING THE BANKS' SITUATION IN FUTURE DECISIONS... just for starters.
So sick of these pricks!
How about get gas prices lower and quit the huge spending!!??
Nvidia stock is up nearly 15,000% over the past 10 years and has a market cap over $1 trillion. It pumped this year not even on good earnings, but just expectations of growth because of AI. The P/Es of stocks this year are at levels that have consistently preceded recessions. TSLA is up around 150% YTD. Best of luck to those buying this market prior to interest rates going 7%+ and a presidential election. Inflation has been over 25% just since Biden took office, and is still over 5% over the past year despite current rates. Inflation has outpaced wages for 26 months straight now.
more bankrupt bank is coming
and gold price
Install Our App
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.