The top headlines for FOX Business Flash on March 21st are:
US stocks negative overnight after investors sell stocks and government bonds after Federal Reserve Chairman Jerome Powell reiterated the central bank’s commitment to curb inflation through a series of rapid rises in interest rates. And soared between the positive territory.
| Ticker | safety | last | Change | change % |
|---|---|---|---|---|
| I: DJI | Dow Jones Industrial Average | 34552.99 | -201.94 | -0.58% |
| SP500 | S & P 500 | 4461.18 | -1.94 | -0.04% |
| I: COMP | Nasdaq Composite Index | 13838.460187 | -55.38 | -0.40% |
The S & P 500 closed at 4461.18 on Monday, down 1.94 points (less than 0.1%), following comments from Powell about the potential for more aggressive interest rate movements to curb inflation. In response to his comments, Treasury yields have risen to the highest level since May 2019.
The technology-focused Nasdaq Composite index fell 55.38 points (0.4%) to 13838.46, and the Dow Jones Industrial Average fell 201.94 points (0.6%) to 34552.99.
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On Monday’s Wall Street, stocks fell slightly after most of the day bounced.
Yields on 10-year Treasuries jumped from 2.14% late Friday to 2.30%.
U.S. stocks fall between negative and positive territories overnight after investors sell stocks and government bonds after Federal Reserve Chairman Jerome Powell reiterates his commitment to curbing central banks. (AP Photo / Richard Drew)
SME stocks have worsened than the wider market. The Russell 2000 Index was down 1% to 2,065.94.
Powell said in a statement from the National Association of Business Economists that the Fed will halve benchmark short-term interest rates at multiple Fed meetings as needed to slow inflation. The Federal Reserve Board has not halved its benchmark rate since May 2000.
On Wednesday, the central bank announced a quarter point rate hike, the first rate hike since 2018. Stocks recovered after the announcement and had the best week of over a year. Central banks are expected to raise interest rates several more times this year.
Saudi Arabia says it will not blame the oil shortage after the facility was attacked by the Houthi rebels.
Some Fed officials said central banks should start raising interest rates by half in March, before Russia’s invasion of Ukraine adds a new wave of global economic uncertainty to the mix.
Given the increased risk of a recession, Clifford Bennett, chief economist at ACY Securities, said the Fed should act cautiously.
“Europe is likely to fall into recession, and the world continues to rise in energy and food, so the poor will be affected disproportionately, and rising interest rates will affect this war-led inflation wave. I won’t give it, “he said.
This week, there isn’t much US economic data to help investors understand how businesses and investors are dealing with rising inflation.
Russia’s invasion of Ukraine raises concerns that inflation could be exacerbated by pushing up energy and commodity prices. Oil prices have risen by more than 45% this year, and wheat and corn prices have skyrocketed.
Justin Flinn This week, there isn’t much US economic data to help investors understand how businesses and investors are dealing with rising inflation. ((AP Photo / Richard Drew / Associated Press)
Boeing fell 3.6% after China Eastern Airlines-operated 737-800 crashed in China and boarded 132 people. There were no survivors, according to a report on Tuesday. China Eastern Airlines shares fell 7% on Tuesday.
Meanwhile, Asian stocks rose on Tuesday as investors focused on inflation risks, including the war in Ukraine and rising energy costs.
Benchmarks have risen in Japan, South Korea, Australia and China.
Russia’s war on Ukraine and Western sanctions on Russia raise concerns about rising prices that could hinder the turmoil in energy supply to Europe and progress towards an economic recovery from a pandemic.
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Stephen Innes, Managing Partner of SPI Asset Management, said:
Benchmark US Crude Oil added $ 2.89 to $ 115.01 per barrel on Tuesday in electronic trading on the New York Mercantile Exchange. Brent, the international standard, surged from $ 3.78 to $ 119.40.
Japan’s benchmark Nikkei 225 surged 1.4% to 27,202.05. Australia’s S & P / ASX 200 was up 0.9% to 7,341.10. South Korea’s Kospi rose 0.8% to 2,708.63. Hong Kong’s Hang Seng Index rose 1.8% to 21,606.53, and Shanghai Composite rose 0.3% from its previous loss to 3,263.83.
E-commerce giant Alibaba Group’s shares traded in Hong Kong will go from $ 15 billion to $ 25 billion on Tuesday to support stock prices that have fallen more than half since the ruling Communist Party tightened control. After increasing buys, it has surpassed the high-tech industry by initiating crackdowns on regulations that surged 8%.
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In currency transactions, the US dollar hit a six-year high against the Japanese yen, reaching the 120-yen level. By noon, it was trading from 119.47 yen to 120.35 yen. The euro fell from $ 1.1016 to $ 1.0991.