![]() Chicago Mercantile: Certain market data is the property of Chicago Mercantile Exchange Inc. US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account “We believe the market is a little ahead of itself expecting significant cuts to the policy rate in 2024 given the overall stickiness of inflation and signs that certain parts of the economy are reaccelerating, housing being one of them,” said Mike Sanders, portfolio manager and head of fixed income at Madison Investments. Some investors say that the central bank is unlikely to pivot as soon as Wall Street expects, or as quickly. Traders are currently pricing in six rate cuts for 2024, though they remain divided on the magnitude of those cuts, according to the CME FedWatch Tool. This is a Fed that cares more about inflation than recession,” said Rhys Williams, chief strategist at Spouting Rock Asset Management. “We believe the market may underestimate the Fed’s resolve to keep rates higher for longer. The Federal Reserve on Wednesday raised interest rates to their highest level in 22 years - as markets expected - but officials said they haven’t ruled out a rate hike later this year. The Dow’s recent rally boded well for Wall Street, since it suggests that the market’s gains are continuing to broaden beyond just the seven Big Tech stocks that have dominated this year.Ī rally in the blue-chip index also tends to foreshadow gains across the market. The Nasdaq initially surged Thursday, boosted by a stronger-than-expected quarterly financial report from Meta Platforms, before sliding. Strong earnings and investor optimism about tech - particularly fueled by interest in AI - has also helped stocks pick up steam throughout the year. CNN Sans ™ & © 2016 Cable News Network.The interior of the New York Stock Exchange's old building in 1895. Market holidays and trading hours provided by Copp Clark Limited. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC and/or its affiliates. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Continued strength in the jobs market has some worried that inflation is still not yet under control. The Fed is certain to raise interest rates again on December 14, but it is not clear if the central bank will do so by just a half point or if it will boost rates by three-quarters of a point for the fifth straight time. Investors are also growing anxious about next week’s Federal Reserve meeting. (TRV) were Dow leaders and just two of six components to finish the day higher. ![]() Shares of JPMorgan Chase, Walmart and Goldman Sachs, which are all Dow components, were flat and down 1.2% and 2.4% respectively. (UNP), added in a CNBC appearance that “clearly the consumer side of the economy is slowing.” The stock ended the day unchanged. (GS) CEO David Solomon also sounded recession alarm bells, telling Bloomberg Tuesday that “you have to assume that we have some bumpy times ahead” and warned that smaller bonuses and possible job cuts were likely at the investment bank.Īnd Lance Fritz, the CEO of railroad giant Union Pacific (Dimon also bashed crypto again, comparing tokens to “pet rocks.”) And JPMorgan Chase CEO Jamie Dimon said on CNBC he thought there could be a “mild to hard recession” due to the Federal Reserve’s continued interest rate hikes. (WMT) CEO Doug McMillon told CNBC that lower-end consumers were still feeling the pinch from inflation. The S&P 500 and Nasdaq were down 1.4% and 2% respectively.įour of America’s leading chief executives gave cautious comments about the economy in interviews Tuesday, and that seems to have spooked the market. That follows a nearly 500-point slide Monday. The Dow fell more than 350 points, or 1.3%. Stocks sank Tuesday, the second straight day of losses on Wall Street. Some top CEOs appear to be worried that the economy could be the Grinch that steals Christmas this year.
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