Stock prices fell to return some profit after last week’s rise, but energy prices continued to rise again.
The S & P 500, Dow and Nasdaq fell in a volatile session on Monday afternoon. Major indices expanded losses after Federal Reserve Chairman Jerome Powell said he would “adjust policies as needed” to curb inflation, including accelerating rate hikes as needed. Treasury yields have been added to previous profits across the curve, with benchmark 10-year yields rising to nearly 2.3%.
In the latest developments of the Russian war in Ukraine, energy and commodity prices have skyrocketed. As of Monday, Ukraine refused to hand over the aggressive port city of Mariupol to Russian troops, but civilian deaths increased across Ukraine.
US crude oil prices (CL = F) rose more than 6% at session highs, temporarily surpassing $ 111 per barrel, while the international standard Brent crude (BZ = F) rose to about $ 114 per barrel. It has risen. Prices for aluminum, palladium and wheat also rose on Monday.
At the beginning of a relatively quiet week of corporate earnings results and new economic data, traders are up to date with the Federal Reserve against the ongoing war in Ukraine, which is exacerbating sustained inflation and existing price pressures. Continued to slow the market impact of its monetary policy decisions.
Last week’s Federal Reserve move raised interest rates by a quarter point, signaling six more rate hikes later this year, and was hit by at least a temporary rise in US stocks. After a few weeks of speculation. The Fed also showed that discussions have begun and that quantitative monetary tightening could be implemented, that is, assets could be rolled off from a balance sheet of nearly $ 9 trillion.
“An important message from the Federal Reserve and the Bank of England last week and the European Central Bank’s meeting last week was that the war in Ukraine did not discourage plans to tighten central bank policy.” Neil Shearing said. The Group Chief Economist at Capital Economics wrote in a memo. “In fact, both the Fed and the ECB have brought hawkish surprises.”
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“The war has added to the pressure on real income in advanced economies and has significantly tightened Europe’s financial position, but so far the central bank has decided to lower inflation and curb the impact of the second round on wages and prices. We continue to focus. This is, after all, the right decision. ” “Economic outlook is very uncertain, but the high starting point for inflation, and the potential for it to rise further, justifies policy tightening.”
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4:04 pm ET: Stocks fell after hawkish Fed remarks: Dow fell 202 points, or 0.6%
4:04 pm ET The main market movements as of now are as follows.
S & P 500 (^ GSPC).: -1.93 (-0.04%) to 4,461.19
Dow(^ DJI).: -201.94 (-0.58%) to 34,552.99
Nasdaq (^ IXIC).: -55.38 (-0.40%) to 13,838.46
crude oil(CL = F).: + $ 7.77 (+ 7.42%) to $ 112.47 barrels
gold (GC = F).: + $ 7.30 (+ 0.38%) to $ 1,936.60 per ounce
10 years finance (^ TNX).: +16.7 bps at 2.3150%
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1:49 pm ET: Stocks fall, Nasdaq down 1% after Powell’s remarks
Here are the places where the market was trading on Monday afternoon:
S & P 500 (^ GSPC).: -24.29 (-0.54%) to 4,438.83
Dow(^ DJI).: -334.60 (-0.96%) to 34,420.33
Nasdaq (^ IXIC).: -158.86 (-1.15%) to 13,733.95
crude oil(CL = F).: + $ 5.18 (+ 4.95%) to $ 109.88 barrels
gold (GC = F).:-$ 0.40 (-0.02%) ~ $ 1,928.90 / oz
10 years finance (^ TNX).: 2.295% at +14.7 bps
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12:33 pm ET: Powell states that the Fed “adjusts policies as needed” to curb inflation and maintain a strong labor market.
Federal Reserve Chairman Jerome Powell said on Monday that the central bank will continue to monitor data and trends and “adjust monetary policy as needed” to maintain economic growth and curb inflation. ..
“As the outlook progresses, we will adjust policies as necessary to ensure that prices return to stability in a strong job market,” Powell said in a speech.
He also said that “continuous rate hikes are appropriate” to bring inflation back to the Fed’s target of 2%. This is consistent with the Fed’s telegram last week following its March meeting, with median members predicting an additional six-fold rate hike this year.
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9:30 am ET: Inventory is slightly lower and open
Here are the places where stocks were traded shortly after the market opened on Monday morning:
S & P 500 (^ GSPC).: + 7.29 (+ 0.16%) to 4,470.41
Dow(^ DJI).: -10.66 (-0.03%) to 34,744.27
Nasdaq (^ IXIC).: -16.46 (-0.12%) to 13,877.47
crude oil(CL = F).: + $ 4.05 (+ 3.87%) to $ 108.75 barrels
gold (GC = F).: $ -6.06 (-0.34%) to $ 1,922.70 per ounce
10 years finance (^ TNX).: 2.237% at +8.9 bps
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8:51 am ET: The Fed’s Bostic is seeing a total of six rate hikes this year, taking into account “increasing levels of uncertainty.”
Raphael Bostic, president of the Federal Reserve Board of Atlanta, said on Monday that he saw the central bank raise interest rates a total of six times this year. This represents a more dovish outlook than many of its peers presented in the Federal Open Market Committee’s latest Economic Forecast Summary (SEP).
Bostic, a non-voting member of the FOMC this year, said in a keynote speech at the National Association for Business Economics’ annual policy meeting Monday morning, “We will raise rates six times in 2022 and two more in 2023. “. The Fed’s latest SEP released last Wednesday.
“I recognize that I’m heading towards the bottom of the distribution compared to my colleagues, but the rising level of uncertainty is in front of me, and today a very aggressive rate path is appropriate. “It relieves my confidence,” said Bostic. “Events are changing rapidly, with significant changes along key aspects such as aggregate demand, and policy trajectories need to be adjusted quickly.”
“Risks go bidirectional here. If demand falls in the face of economic uncertainty and the elimination of monetary policy adjustments, the right path may be shallower than I currently predict. There is, “he added. “But there are other developments, such as a shift in supply strategy, which means higher costs and can therefore motivate policy paths that are steeper than I would expect.”
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8:37 am ET: The Chicago Fed’s National Activity Index shows a gradual slowdown in economic growth in February.
The Chicago Federal Reserve’s monthly National Activity Index slightly exceeded February’s expectations, reflecting a gradual slowdown in US economic growth.
The Federal Reserve Bank of Chicago said Monday morning that the headline index had fallen to 0.51 in February. This dropped 0.59 in January, a slight correction from the previously reported 0.69. Readings of 0 are consistent with the US economic growth rate in the average past trend, while readings above 0 indicate growth.
Of the 85 monthly economic indicators that make up the index, 61 made a positive contribution and 24 fell below the index in February.
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8:20 am ET: Boeing stocks fall after 737 airliners crash in China
The stock price of Boeing (BA), a component of the Dow Jones Industrial Average, fell in pre-market transactions on Monday morning after a passenger plane with more than 130 passengers crashed in China’s Guangxi Zhuang Autonomous Region.
The Civil Aviation Administration of China has confirmed the crash of a Boeing 737 jet operated by China Eastern Airlines. The number of casualties after the crash is unknown, and Chinese authorities have dispatched rescue teams to the crash site.
Boeing shares fell more than 6% in early trading. Shares fell 4.2% for the year leading up to Friday’s closing.
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Monday 7:40 am: Equity futures mixed, Dow and Nasdaq head for slightly lower open
Here are the places where the market was trading towards the opening bell on Monday morning:
S & P 500 Futures (ES = F).: +2.25 points (+ 0.05%) to 4,455.75
Dow Futures (YM = F).: From -58 points (-0.17%) to 34,575.00
NASDAQ futures (NQ = F): -1 point (-0.01%) to 14,412.50
crude oil(CL = F).: + $ 4.55 (+ 4.35%) to $ 109.25 barrels
gold (GC = F).: $ -2.80 (-0.15%) to $ 1,926.50 per ounce
10 years finance (^ TNX).: 2.191% at +4.3 bps
New York, New York-March 16: Traders will work on the floor of the New York Stock Exchange (NYSE) in New York City on March 16, 2022. Dow extended yesterday’s rally and started the day in the positive realm. (Photo by Spencer Pratt / Getty Images)
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Emily McCormick is a Yahoo Finance reporter. Follow her on Twitter
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