Home BusinessMarket Stocks look to shake off Fed rate worries: Stock market news today

Stocks look to shake off Fed rate worries: Stock market news today

by Clarence Jones

Wall Street stocks struggled to make gains on Monday as the Federal Reserve’s “higher for longer” interest rate strategy put pressure on the market. The S&P 500 was flat, while the Dow Jones Industrial Average was down 0.1%. However, the Nasdaq Composite gained about 0.1%. The 10-year Treasury yield reached its highest levels since 2007.

The prospect of high oil prices has raised concerns about inflation staying high, which has led to a debate about whether the Fed will be restricted from cutting rates in the near future. Investors are now awaiting a fresh read on PCE inflation due out on Friday for further insight.

There is also growing concern about a potential US government shutdown, with less than a week left to avert it. Investors are starting to assess the potential impact on the economy, given the lack of progress on a budget agreement. Additionally, a reading on second-quarter GDP is scheduled for Thursday.

In other news, a tentative deal to end the Hollywood writers’ strike lifted media stocks in early trading. However, there is less optimism around the autoworkers’ strike, as Ford stated that there are still significant gaps to close before reaching a new labor agreement with the UAW.

Nerves were rattled by signs of growing debt woes at Chinese property developers, particularly Evergrande, which have raised concerns about the impact on the world’s second-largest economy.

In individual stocks, Amazon has signed a deal to invest up to $4 billion in startup Anthropic, which will help the company in its push to become a major player in AI.

President Joe Biden is planning to visit Michigan on Tuesday to support the United Auto Workers strike, marking the first time a sitting president has visited a strike in at least 100 years. This visit comes ahead of former President Donald Trump’s visit to autoworkers in Detroit on Wednesday.

In the afternoon, Wall Street reversed its course and moved into positive territory as investors tempered their expectations about the Fed’s tightening campaign. The S&P 500 edged higher by 0.2%, while the Dow Jones Industrial Average climbed just over the flat line. The Nasdaq Composite gained about 0.3%.

Amazon is making a significant investment in AI company Anthropic, which will help bolster its partnerships in generative artificial intelligence. This move underscores big tech’s ambitions in developing AI technology.

The Hollywood writers’ strike appears to be nearing an end, as writers reached a tentative agreement with studios on Sunday. The details of the deal have not yet been released, but it is expected to address higher compensation and issues related to streaming residuals and artificial intelligence.

In the morning, stocks opened lower, capping off a bruising September. The final trading week of the month started with stocks sliding, setting investors up for a losing month as optimism has faded regarding the Fed’s tightening campaign. The S&P 500 edged lower by 0.2%, while the Dow Jones Industrial Average decreased 0.2%. The Nasdaq Composite also lost ground.

Overall, uncertainty surrounding interest rates, government shutdowns, and labor strikes continue to weigh on Wall Street, leading to a lackluster performance in the stock market. Investors are eagerly awaiting more clarity and data to navigate these challenging times.

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