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U.S. stocks are mixed after Fed officials stoke rate fears

AuthorLiz Moyer
Published 02/17/2023, 09:47 AM
Updated 02/17/2023, 10:43 AM
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks were mixed on Friday after comments from Federal Reserve officials renewed fears about interest rates.

At 10:37 ET (15:37 GMT), the Dow Jones Industrial Average was up 70 points or 0.2%, while the S&P 500 was down 0.4% and the NASDAQ Composite was down 0.7%.

Hotter-than-expected producer prices on Thursday prompted fears that the Fed would keep its monetary restrictive for the rest of the year. Fed Gov. Michelle Bowman said on Friday that interest rates will have to go higher to tame inflation. "I think there's a long way to go before we reach our 2% inflation objective and I think we'll have to continue to raise the federal funds rate until we see a lot more progress on that," Bowman said at a banking conference in Nashville, Tenn., on Friday.

And St. Louis Fed President James Bullard said he wouldn't rule out supporting a half-percentage point rate increase at the March meeting. Many market watchers have been betting on a quarter of a percentage point increase.

Bullard said Thursday he supported the idea of a half-point hike in February to bring the benchmark rate above 5% as soon as possible. Cleveland Fed President Loretta Mester also said she saw a strong case for a bigger increase.

Richmond Fed President Thomas Barkin was also scheduled to speak today.

Stocks have gyrated this week after the economic data pointing to inflation as well as a tight labor market.

Shares of Moderna (NASDAQ:MRNA) fell 4.5% after its experimental mRNA flu vaccine wasn't as effective as an approved vaccine against influenza B.

DraftKings (NASDAQ:DKNG) shares jumped 16.6% after the gambling company reported a smaller-than-expected loss in the quarter and raised its outlook for 2023, benefiting as more states legalize sports betting.

Deere & Company (NYSE:DE) shares rose 6.6% after it raised guidance as farmers continue to buy new agriculture equipment.

Oil fell. Crude Oil WTI Futures was down 3.5% to $75.77 a barrel, while Brent Oil Futures was down 3.1% to $82.52 a barrel. Gold Futures was down 0.4% to $1845.

Latest comments

Retail investors have been flooding into the stock market recently. Wide spread of animals including pets have dead in Ohio town hit by toxic train crash.
Don't worry.  Those dead pets weren't in the market.
rate hike for sure and it's not good for stock. market go down.
"rate hike for sure"  --  That's a known for months
fed officials doing the manipulation purposely,they should banned to talk publicly on this subject forever.What is the meaning of this nonsense fed speak??can anybody elaborate?It's nothing but purely manipulation guys
The Fed has been very clear.
this ping pong talk doesn't add any value, only to their bank account. I have lived long enough to know that some people will make an awful lot of money out of this circus
FED and their officials will play this game till they squeezed the last drop out of the middle class and transferred the wealth to themselves and their friends
-60% decline is coming for american stock market
I don't agree. -50% from ATH.
the US is not the place to invest. corrupt government, worst trade deals in the world and facing Russia and China.
  Please name the better-than-US places
No matter what the Fed prez say the analysts will still manipulate their statements to pivot dovish interest pause reduction, cooling inflation news......
And the show begins with a miraculous rocket launch at the open.  Flagrant, CRIMINAL MANIPULATION at its finest in broad daylight.  Don't see this happen to a manufactured "rally," now do you?  It just has to be repeated.  BIGGEST INVESTMENT JOKE IN THE WORLD.
"rocket launch at the open"?  The market was in downtrend for the 1st 1/2 hour.
falling? where? all green baby.
Investors will believe that a pivot is right around the corner irrespective of what the FED says.
The market has been trending down because of what the Fed members have been saying
It is not the Fed officials turning hawkish. It is the inflation rising. The latter is a material reason. The Fed talk is just a consequence.
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