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U.S. stocks are wobbling on prospect of more interest rate hikes

Published 06/22/2023, 10:06 AM
Updated 06/22/2023, 11:49 AM
© Reuters.

Investing.com -- U.S. stocks were wobbling as Federal Reserve Chair Jerome Powell headed back to Capitol Hill for his second day of testimony.

At 11:45 ET (15:45 GMT), the Dow Jones Industrial Average was down 13 points or flat, while the S&P 500 was up 0.2% and the NASDAQ Composite was up 0.7%

On Wednesday, Powell told lawmakers in the House that the Fed wasn’t done raising interest rates to cool inflation. He is appearing as part of his semi-annual testimony to Congress about the economy.

On Thursday, Powell repeated his message to the Senate that it would be appropriate to raise rates again this year, possibly twice, if the economy performs as expected. He said working families suffer most directly from high inflation.

Powell’s remarks suggested that more rate increases are "a pretty good guess" of what the Fed has planned assuming the economy continues on its current path. Futures traders see a 74% probability of rates rising a quarter of a percentage point at the Fed’s July meeting.

Guided by data

The Fed’s next move will be guided by data, Powell said. Recent inflation data has shown signs that the economy is cooling, while the labor market is holding steady. Initial jobless claims on Thursday were 264,000, the same as the prior week and slightly above expectations.

Shares of Boeing (NYSE:BA) parts supplier Spirit AeroSystems Holdings (NYSE:SPR) fell 9.7% after it said it would suspend production at a plant in Kansas, where workers announced a strike starting this weekend. Boeing shares fell 2.4%.

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Darden Restaurants, Inc. (NYSE:DRI) shares fell 1.6% after the parent of Olive Garden gave annual revenue guidance that was above estimates.

Latest comments

The wobbling will stop when sock puppet analysts and IBs start churning AI news.....
Take it easy folks. It is a very quiet, non-eventful, dull and neutral market day.
Too many Chicken Littles are posting.
bull edge funds are FEDs protégé , preventing the market correction that until it not happens will keep inflation high , making workers pay
One miracle after another in the GREATEST FINANCIAL FRAUD IN HISTORY, AND BIGGEST INVESTMENT JOKE IN THE WORLD.
just more scare tactic writing ehhh you libs kill me
Nothing scary.  You're seeing things.
it seem markets like higher interest rates. Another proof that etoro traders lead the market
The S&P 500 is flat.
The whole economy is wobbling
How are you so consistently wrong?Econ 101 not  Keynes 101- he was an idiot.
anyone up here who wants to work in indian market i can help u guys please reply if anybody ia interested
lmfao 😆
Fed wants US to go in deep recession and markets to crash
I wonder if you know how stupid this comment sounds. Absolutely absurdly stupid. Like a six year old.
  Retrumplicans have been making stupid comments.  For months, retrumplicans here have been saying the US has been in a recession for months, and that the US is the cause of global inflation.
 Salon.com's "The GOP used a Two Santa Clauses tactic to con America for nearly 40 years  --  This scam has been killing wages and enriching billionaires for decades"
Overvalued stocks continue becoming more overvalued.
Since it has continued for so long, maybe time to re-define overvalued"."
AI and EV stock investors are not afraid of rate hikes , Nasdeq rocks
same BS
Doesn't look to bad now. Will end green.
That's a really dishonest headline.  What the recent FED statements conveyed is that they have decided to STOP doing rate hikes, each month, and instead only to do two more over the next 6 months... so, in other words, OBVIOUSLY, to radically slow down the rate hikes... And take into account the bank failures that the past rate hikes, by the fed, already caused... YOU KNOW, the ones which Powell specifically cited as guiding his policy.  It's time to report deceitful MSM to the SEC... because they know this.  They know all of it.  Why have they chosen the path of attempted mass deceit?  Remember that we have the options to report mass media's deceptive market manipulation to the SEC.  What they called "hawkish" is actually DOVISH.
falling up?
Self driving stock
2YR yield consistently above 4.7%. So 5% is not too far off.
The stocks will turn green after 10 am when the amnesiac effects erase the hawkish and interest hike jitters
nope it didn't
Yes it did
New ATH by year end. Madness.
A little behind lol
can U.S market will cover up in coming days?
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