por admin » Jue Feb 23, 2023 11:48 am
Stocks give up earlier gains, Dow falls more than 100 points: Live updates
Hakyung Kim
Tanaya Macheel
Stocks still aren't digesting more aggressive Fed stance, says Kestra's Kara MurphyWATCH NOW
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Stocks still aren’t digesting more aggressive Fed stance, says Kestra’s Kara Murphy
Stocks fell Thursday, as traders tried to regain their footing following four straight losing sessions for the S&P 500.
The S&P 500 was down 0.4%, while the Dow Jones Industrial Average slipped 172 points, or 0.5%. The Nasdaq Composite fell 0.5%. The major averages started the day on a high note, as a 13% rally in Nvidia boosted tech stocks.
The S&P 500 lost 0.2% on Wednesday, notching its longest losing streak since December. The Dow also fell, while the Nasdaq Composite posted a small gain.
The moves came after the Federal Reserve released the minutes of its most recent meeting, which concluded Feb. 1, showing that members of the central bank are resolved to keep fighting inflation with rate hikes.
Inflation “remained well above” the Fed’s 2% target and the labor market “remained very tight, contributing to continuing upward pressures on wages and prices,” according to the minutes.
“This is a data-dependent Fed, that focuses less on a forecast and more on each individual data point,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management.
He added, “Unless we have new workers come back into the labor market, we’re likely at the end of an economic cycle, because the Federal Reserve will raise rates until they get labor market slack. The only way that we’ll get a soft landing is if more people are drawn back into the labor market.”