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U.S. stocks are falling as investors look ahead to Fed meeting

Published 12/06/2022, 09:45 AM
Updated 12/06/2022, 10:20 AM
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks were trading lower as investors pause before next week’s interest rate decision by the Federal Reserve.

At 10:17 ET (15:17 GMT), the Dow Jones Industrial Average was down 155 points or 0.5%, while the S&P 500 was down 0.9% and the NASDAQ Composite was down 1.4%.

On Monday, stocks sold off on concerns the Fed will continue with its rate-hiking path for longer. It is widely expected to raise rates again next week, but perhaps by a smaller half-percentage point increment than at each of its four previous meetings.

The fear was fueled by better-than-expected data on the services industry, adding to a better-than-expected report on jobs last Friday. Stronger data could give the Fed reason to continue on its rate path for longer.

Also hanging in the balance: the results of a runoff election today in Georgia, a key battleground state. The vote could determine the balance in the Senate, where Democrats hold a razor-thin majority.

A win by incumbent Democrat Sen. Raphael Warnock could give the party 51 seats in the Senate, while a victory by Republican candidate and former football star Herschel Walker could give the GOP power to block initiatives.

GitLab Inc (NASDAQ:GTLB) shares are up 10.5% after it beat expectations on sales and reported a smaller-than-expected loss for the quarter. Signet Jewelers Ltd (NYSE:SIG) shares jumped 19.4% after it reported profit per share that was more than double expectations and met expectations with a 7.6% drop in same-store sales.

Oil was trading lower. Crude Oil WTI Futures were down 1.2% to $76.03 a barrel, while Brent Oil Futures crude is down 1.5% to $81.44 a barrel. Gold Futures were up 0.2% to $1785.

Latest comments

by gold
by gold
I have information that the Federal Reserve will not raise interest rates above fifty points
Amazing some think the market is legit when it is all ran on computer algos
so ...use the same type of analysis as the algos .....they use pattern recognition, word association and fibonacci retracements and extensions......
Time to pause rate hikes after 0,5% increase in december. Send a clear signal on this and we will get a santa rally
Clear signals have been given after every Fed meeting. No pause until rates much higher.
Today’s story is they are waiting, so the market drops, the other day was china lock down, which now china opened up, yesterday was Tesla cut production which was a fake news from Bloomberg, today just waiting for Fed while Powell already said 0.5 it is for December, but now we are just waiting
wel said.investing.com is doing scam with scammers i think
Fed should stop raising the rate right now. They need to be proactive and looking forward, not looking at back mirror.
agree, just pause rate hike for 2times in a row to see the effect first
Excuse da jour, even week, another excuse to jerk the numbers.
Worst you create panic and then only market is falling
if petrol and diesel price come down..no recession...any where
Been to a grocery store lately??
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