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Stock Market Today: Dow falls as Fed's hawkish pause puts big dent in big tech

AuthorYasin Ebrahim
Published 09/20/2023, 04:04 PM
© Reuters.
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Investing.com -- The Dow closed lower Wednesday, as surging Treasury yields put the squeeze on big tech after the Federal Reserve left interest rates unchanged, but leaned into higher-for-longer rate regime.    

The Dow Jones Industrial Average fell 0.2%, 76 points, Nasdaq fell 1.5%, and the S&P 500 fell 0.9%.

Federal Reserve skips rate hike, but leans into higher-for-longer stance

The Federal Reserve kept rates steady on Wednesday, and kept its forecast for one more rate hike this year, but signaled a higher-for-longer rate regime by reining in the number of rate cuts for next year. 

"The bottom-line is that the Fed is embracing the 'higher for longer' approach to getting inflation down to target," Jefferies said in a note.

Powell attributed the more hawkish path to recent strength in the economy that threatens to boost inflation.    

"The stronger economic activity means that we have to do more with rates," Powell said, addressing a question on why the Fed reduced the number of rate cuts for next year.  

Treasury yields rebound to close at more than decade highs to pressure big tech

Treasury yields including the 2-Year and 10-Year yields cut intraday losses and surged to close at fresh cycle highs after the Fed decision.

The 2-year Treasury yield, which is more sensitive to interest rate decisions, closed at 5.120%, the highest level since 2006, after falling to a low of 5.049% on the day.

Growth sectors of the marketing including big tech came under pressure from rising Treasury yields, paced by a more than 3% in Alphabet (NASDAQ:GOOGL).

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Meta Platforms (NASDAQ:META) and Apple (NASDAQ:AAPL) fell 1%.

Instacart slumps, giving up debut gains

Instacart ( Maplebear Inc.) (NASDAQ:CART) fell more than 10% to end the day just above its IPO price of $30.

 The online grocery delivery platform made its stock market debut on Tuesday, rising as much as 40% on initial trading before ending the day up 12%.  

The wobble in the stock comes just as analysts at Needham started coverage on the stock with a hold rating, citing rising competition and slowing online grocery sales.

Latest comments

By next week the sock puppet analysts and IBs will churn out more AI hype 🐂💩news........
Every time powell talks it caused the market to drop more. why didn't someone use duct-tape on the old man.
if you're sure, trade accordingly..
 for sure
Can't win in this manipulated market. Doof didn't raise it, should be green.
Then don't play.
The fact that it is manipulated is exactly why you CAN win. We know the game, let's play along.
thumbs down loser, you're a troll.
2019 repeat once again
Worst reserve in history
worse than greenspans' long and careless reign? you either have a short memory, or you're a millennial...
I believe in stock market. As a long term investor, I am not being afraid by feds policy. In the end 🔚 I will have the last laugh
how did it played during covid19? :)
  Do you not understand "long term"?
it's totally controlled by the cabal. wait, you'll see.
And don't tell me, tomorrow we'll have a miraculous "reversal" as savvy "investors" load up on criminally overvalued stocks as they "digest the FED's comments."  Again, can't make this stuff up folks, and millions of American's have their retirement hopes pinned to this fraud.
I agree with you… that’s what always happens, and that’s how it’s always explained.
i dont know how someone can repeat themselves so much almost everyday and not grow tired of their own person
Buy physical silver and thank me later....
The laughingstock of the investing world is a criminally manipulated, overvalued farce.  It's being kept fraudulently inflated to allow Wall Street to unload ridiculously overvalued equities on retirement and pension plans.  Talk about the ultimate Ponzi Scheme, where funds never dry up.  Can't have this joke of a "market" fall, as consumer spending will go along with it, so the fraud continues.
Congratulations mr jp
inflation will never go down unless gasoline and diesel prices go down..renewable electricity sources are not an option., ask any one with the ability to read and comprehend.
"renewable electricity sources" ARE "an option", not the only option.
can you read and comprehend?
Can they just lose in 410 days from now...?
"US government restarts delivery of free COVID tests...They are trying to raise numbers of the election variant so that Biden can hide in the basement again and they can rig mail in ballots. Trump is currently polling higher than Biden so they are resorting to this nonsense again.
Yeah Biden is controlling the world to raise covid. please tell me you can't be that clueless. Hahahahaha
only morons think this way so many morons in the US lead by 👑 of Morons, Trumppoor fellow the US
 COVID is no more deadly than the common flu. They pushed out massive amounts of testing and changed they way they counted COVID deaths to manufacture fear during an election year. The vaccines do not even prevent you from getting and spreading the virus. Wake up. Like BLM, COVID is just making an appearance during election years for political purposes.
Hawkish pause is bad,
The reality is that inflation won't come down until the government quits spending so much money.
The gov't didn't quit in the past when inflation rate was low.
Nice......?
Govt numbers are not showing the reality.
The have secretly gone back and negatively revised economic numbers more under the Biden regime than under any other president in history.
There are non-gov't numbers, too.
Inflation is a difficult dragon to slay. Its a beast that still has teeth.
Nice job fed. We have to keep big tech in check! There stocks are overvalued and they know it (or should).
Fed should not control the markets!!!!
They don't control the markets. The markets just react to the Fed.
 lol...that's the same thing as control
Fed is well aware, hawkish stance will crash the market, dovish position will cause bull rallies. Thus they can easily manipulate the market movement to their advantage
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