U.S. stocks fall sharply as the Federal Reserve announces

Stock prices fell almost during Wednesday’s trading as traders awaited the announcement of Federal Reserve monetary policy. Nasdaq technology stock.

In recent trading, the key average has fallen to the new lows for the session. The Nasdaq is down 184.74 points or 1.5% to 12,379.02, the S & P 500 is down 19.95 points or 0.5% to 4,155.53 and the Dow is down 21.80 points or 0.1% to 33,106.99.

The weakness of Wall Street is that it is widely expected that traders will support the Fed’s latest monetary policy decisions and central banks will raise interest rates by 50 basis points.

Traders may pay close attention to the accompanying statement as a clue as to how aggressively the central bank plans to tighten monetary policy in the future.

According to a report from the Institute for Supply Management, there may also be negative sentiment that the growth pace of US services sector activity has slowed unexpectedly.

According to the ISM, service PMI fell from 58.3 in March to 57.1 in April, but numbers above 50 still indicate sector growth. This decline surprised economists who expected the index to rise to 58.5 inches.

Anthony Nieves, chairman of the ISM Services Business Investigation Commission, said the index recession was primarily due to labor restrictions and slowing growth in new orders.

Employment growth in the US private sector slowed more than expected in April, according to another report released by payroll firm ADP.

According to ADP, private sector employment increased by 247,000 in April after a surge in 479,000 employment, which was revised upward in March.

Economists expected private sector employment to surge by 395,000 compared to the 455,000 additional jobs initially reported last month.

The Commerce Department also released a report showing that the US trade deficit expanded to a new record in March.

The report showed that the trade deficit increased from the revised $ 89.8 billion in February to $ 109.8 billion in March. Economists expected the deficit to grow from $ 89.2 billion, which was originally reported last month, to $ 107 billion.

On the day, networking stocks showed a significant downtrend, dropping the NYSE Arca Networking Index by 2.3%.

Airline stocks also show significant weaknesses, as reflected in the 2% downturn from the NYSE Arca Airline Index.

Biotechnology stocks have also fallen significantly on the day, with the NYSE Arca Biotechnology Index down 1.8%.

Retail, steel and gold inventories are also showing a marked downtrend, while oil and utility inventories are rising.

In overseas transactions, stocks market Movements across the Asia-Pacific region almost fell on Wednesday, with Japanese and Chinese markets still closing holidays. Hong Kong’s Hang Seng Index fell 1.1%, while Australia’s S & P / ASX 200 Index fell 0.2%.

On that day, major European markets also fell. Germany’s DAX index is down 0.1%, the UK’s FTSE 100 index is down 0.6%, and France’s CAC 40 index is down 0.9%.

In the bond market, government bonds fell as traders waited for the Fed to announce. After that, the yield on the benchmark 10-year bond, which moves in the opposite direction to the price, rose 2.9 basis points to 2.989%.

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U.S. stocks fall sharply as the Federal Reserve announces

Source link U.S. stocks fall sharply as the Federal Reserve announces

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