June 18, 2021
(Reuters) – US Federal Reserve Board of Governors James Bullard commented that the U.S. central bank could raise interest rates faster than previously expected creepy investors, with Dow. The S & P 500 recorded its worst weekly performance in a few months, with US stocks declining sharply on Friday.
The Dow Jones Industrial Average and the benchmark S & P 500 started the week at record closing prices, but eventually fell the most in any week since late October and late February, respectively.
The technology-intensive Nasdaq Index has also fallen, despite having hit a record two finishes in the last five days.
Investors’ confidence in existing positions was initially weakened by the Fed’s policy council. It showed that interest rate hikes were expected to occur sooner than expected, allowing us to start talking about large-scale stimulus tapering rather than just thinking. about it.
Federal Reserve Bank of St. Louis Governor Bullard said he was one of seven officials who saw rate hikes starting next year to curb inflation on Friday.
Inflation and how the US central bank will tackle it when the country leaves the pandemic for the policy meeting that ended Wednesday was at the heart of investors.
“I’m not surprised to see the market sell out a bit,” said Tim Grisky, chief investment strategist at Inverness Counsel in New York.
Wall Street’s horror gauge, the CBOE Volatility Index, closed on Friday at a four-week high.
“Next week, various Federal Reserve Boards will give speeches. We will do the same. Some governors will be more hawkish and some will be more dovish, so we will come and go several times. Probably, “says Grisky. Added.
The Dow Jones Industrial Average fell 533.37 points (1.58%) to 33,290.08 on Friday, the S & P 500 fell 55.41 points (1.31%) to 4,166.45, and the Nasdaq Composite Index fell 130.97 points (0.92%) to 14,030.38. It was.
Following Bullard’s comment, the US dollar rose, pushing the index tracking greenbacks against six major currencies to its highest level since mid-April.
US crude oil prices, which have been plagued by the strong dollar, initially fell on Friday, but recovered as producer groups expected US oil production growth to be limited this year, according to OPEC sources. [O/R]
Rising commodities did not lead to positive sentiment towards US energy stocks. The index for this sector had the worst performance of the day. Utilities and financial indicators also fell by more than 2%.
Friday was also “Fourx Witch Day” and US options and futures contracts expired quarterly at the same time. Randy Frederick, vice president of trading and derivatives at Charles Schwab, said this was the biggest option expiration in history.
Volume on the US exchange was 14.97 billion shares, compared to an average of 10.96 billion shares over the last 20 trading days.
(Report by Sagarika Jaisinghani, Medha Singh, Shashank Nayar in Bangalore, David French in New York, edited by Maju Samuel and Diane Craft)
Dow, S & P Post Worst Week in Months After Hawk Federal Reserve Board of Governors Spy Investors
Source link Dow, S & P Post Worst Week in Months After Hawk Federal Reserve Board of Governors Spy Investors