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Stock Market Today: Dow Slips After Fed Officials Push Back Against Pivot

Stock Markets Oct 05, 2022 04:34PM ET
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By Yasin Ebrahim

Investing.com -- The Dow closed slightly lower Wednesday after swinging between gains and losses as Treasury yields resumed their climb after Federal Reserve officials pushed back against bets of a pivot.

The Dow Jones Industrial Average was 0.1% lower, or 8 points, the Nasdaq was down 0.3%, and the S&P 500 fell 0.2%.

San Francisco Federal Reserve President Mary Daly said that the Fed’s goal to keep tightening monetary policy until interest rates are at a restrictive level “hasn’t really changed,” easing investor bets on a Fed pivot.

Interest rates had reached a point that was potentially a “little bit restrictive, or just at neutral,” Daly added, though insisted that “more rate increases [was] necessary” to bring inflation down. Atlanta Fed President Raphael Bostic echoed those comments, saying it's important for the Fed to "remain purposeful and resolute" in the battle against inflation. 

Economic data, meanwhile, showed U.S. services activity rebounded by more than expected in September, and the private labor market remains robust pointing to underlying economic strength.

Treasury yields climbed, but tech stocks fought back from session lows as dip buyers helped big tech move off session lows.

A climb in chip stocks also supported the broader move off the lows in tech, with Marvell Technology Group Ltd (NASDAQ:MRVL) and Taiwan Semiconductor Manufacturing (NYSE:TSM) up more than 2%.

Twitter Inc (NYSE:TWTR), meanwhile, fell 1% after rallying more than 22% a day earlier as the social media giant confirmed Tuesday that Musk had agreed to revive the deal to buy the company for $54.20.

The deal is expected to close “without any major issues over the next few weeks,” Wedbush said in a note, though noted that now the “hard part will be fixing it [Twitter] with monetization and subscriber engagement.”

Tesla Inc (NASDAQ:TSLA), however, closed more than 3% lower on expectations that Musk may have to sell more Tesla shares to fund the $44 billion Twitter deal.

As well as a fall in Tesla, consumer discretionary stocks were also weighed down by weakness in cruise line stocks.

Carnival Corporation (NYSE:CCL) fell 4%, while Royal Caribbean Cruises (NYSE:RCL) was down 1%, but Norwegian Cruise Line Ltd (NYSE:NCLH) cut losses to end the day flat.

The stumble in the market following two days of gains comes ahead of the monthly Friday's monthly jobs report that, if surprises to the upside, may pour cold water on hopes for a Fed pivot.

Stock Market Today: Dow Slips After Fed Officials Push Back Against Pivot
 

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Comments (14)
Nils Hullmann
Nils Hullmann Oct 06, 2022 2:08AM ET
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Ukraine is winning.... only and especially in western media
Stan Smith
Stan Smith Oct 05, 2022 8:36PM ET
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...and US National Debt Blows Past $31 Trillion
William Bailey
William Bailey Oct 05, 2022 8:24PM ET
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Wish for the pivot is wishing for total economic collapse
Tris Nrik
Tris Nrik Oct 05, 2022 8:24PM ET
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isn't it the other way tho?
Ricardo Diogo
Rcd72 Oct 05, 2022 6:49PM ET
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market is free money junk addicted....it really totally overvalued...
jason xx
jason xx Oct 05, 2022 6:38PM ET
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Lets just humour the mor. on rejesh kumar and say Zelensky agreed to end the war. If puketin decides to invade the next day over more territorial demands. Would habib kumar then expect Zelenskiy to "agree" to end the war again? You don't deserve to live in America P h. a. g. g. ot
Mitchel Pioneer
Mitchel Pioneer Oct 05, 2022 6:29PM ET
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So if the FED pushed back against the pivot, why didn't the 1,500 points in criminally manufactured "gains" come back out, since they were based on that position?  Why?  This "market" is a fraudulent, criminally manipulated JOKE.
jason xx
jason xx Oct 05, 2022 6:29PM ET
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Take your losses like a man
jason xx
jason xx Oct 05, 2022 6:29PM ET
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Lol @ you actually believing the reasons the financial media gives you to explain market rallies and sell offs
JIM VETTER
JIM VETTER Oct 05, 2022 6:04PM ET
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The Fed hasn't wavered. These bulls lie to themselves and push the markets up, falsely. These are still bear market rallies and the bottom isn't even close to being in yet.
jason xx
jason xx Oct 05, 2022 6:04PM ET
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Trying to convince yourself?
JIM VETTER
JIM VETTER Oct 05, 2022 6:04PM ET
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jason xx no, I'm already convinced. You?
Rajesh Kumar
Rajesh Kumar Oct 05, 2022 5:40PM ET
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Market has been going down since start of Russia Ukraine war. Biden is supplying bombs and ammunition to Ukraine and prolonging the war. As long as the war goes on, we will not see any pivot. Even Fed cannot do anything. If Zelensky agreed to end the war then market will start to go up.
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Rajesh Kumar
Rajesh Kumar Oct 05, 2022 5:40PM ET
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Biden should stop supplying ammunition to Ukraine. This is the only necessary and sufficient condition for market to go up.
Warm Camp
Warm Camp Oct 05, 2022 5:40PM ET
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Rajesh Kumar  It could be positive for the market, but it is totally unrealistic. This cannot happen.
Khurram Nawaz
Khurram Nawaz Oct 05, 2022 5:40PM ET
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zelenski got 39 billion from biden and most of that went in kick backs . zelenski,s offshore accounts are full .how he can refuse to bidden .bidden separated Russia and Europ and bidden is getting full financial advantage as you can see .
jason xx
jason xx Oct 05, 2022 5:40PM ET
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putin not capable of ending the war mor. on?
SquadW Name
SquadW Oct 05, 2022 5:40PM ET
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Rajesh Kumar  market wont go up because theres recession underneath, if suddenly all markets went up, FED would raise interest rates ALOT immediately, basically markets CANT go up, and youre fighting against the FED right now
G D
G D Oct 05, 2022 4:57PM ET
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These Wall Street "investors" only know to go Long on everything, no critical thinking with all the easy FED money
Samantha
Samantha Oct 05, 2022 4:57PM ET
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carlos guo Rates were raised for a brief time during the Obama administration. Similarly during the Trump administration, rates were raised then retracted before COVID in 2019. I agree that monetary tricks are damaging when overused.
Warm Camp
Warm Camp Oct 05, 2022 4:50PM ET
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The market is very fragile. Oil stocks are the only safe plays, relatively speaking.
 
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