Stocks continue to fall as Wall Street braces for ‘higher’ interest rates for longer: Stock Market News Today


Tech stocks led broader equity declines Thursday as Wall Street worried about the tough message sent by the Federal Reserve with its decision to keep interest rates on hold.

The S&P 500 (^GSPC) fell 1.1% and the Dow Jones Industrial Average (^DJI) fell 0.6%, after falling nearly 1% on Wednesday. The tech-heavy Nasdaq Composite (^IXIC) fell about 1.3% to continue leading the decline.

After looking at the central bank’s forecasts, investors believe its policymakers will expect interest rates to remain “high for a long time.” The debate is over how long that would be “long,” as the central bank hinted at another hike at one of its last two meetings this year. Goldman Sachs has postponed its forecast for a Fed rate cut to the fourth quarter of 2024.

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans and credit cards

The prospect of longer-term higher rates has spooked some investors, as it would weigh on stocks and bonds. The yield on the benchmark 10-year Treasury rose Thursday, touching its highest level in 15 years at one point.

However, Fed Chairman Jerome Powell stressed in his press conference that policy will depend on economic data. Official data on Thursday showed that unemployment claims last week fell to their lowest level since January, the latest sign of strength in the US labor market.

The Bank of England decided to keep interest rates steady on Thursday after 14 consecutive hikes following an unexpected slowdown in inflation. Elsewhere among European central banks, there were few surprises: The Swiss National Bank kept its rates on hold, while Norway’s central bank signaled it may make another hike in December after a September hike.

Among individual stocks, FedEx shares jumped after a big quarterly profit.

  • afternoon trending stocks

    Here are some of the stocks on Yahoo Finance’s trending ticker page in afternoon trading Thursday:

    Eli Lilly (LLY): The drugmaker’s stock fell 4% after the company said earlier this week it was suing 10 medical spas, wellness centers and compounding pharmacies for selling unauthorized versions of its diabetes drug Monzaro. Approval for weight loss is expected at the end of the year. ,

    FedEx (FDX): FedEx shares rose nearly 5% a day after it reported a rise in profit as it took customers from rivals.

    Splunk (SPLK): Shares of Splunk rose more than 20% in afternoon trading after the AI ​​and data-focused cloud computing company agreed to a $28 billion acquisition. cisco (CSCO), which fell 4%.

    Klavio (KVYO): Klaviyo shares fell 0.8%, a day after the marketing automation firm made its stock market debut.

    Nvidia (NVDA): Shares of the chip giant fell 2% as many rate-sensitive stocks took a hit after the Fed’s tough stance.

  • Shares fall in afternoon trading

    Wall Street lost more gains on Thursday afternoon as investors grappled with dovish signals from the Fed about whether to pursue future rate hikes.

    The S&P 500 (^GSPC) declined 1.1%, while the Dow Jones Industrial Average (^DJI) lost about 0.6%, or 200 points. The tech-heavy Nasdaq Composite (^IXIC) declined about 1.3%.

  • Jobless claims unexpectedly fall in another sign of resilience

    The number of Americans applying for unemployment benefits fell by 20,000 last week, the lowest figure since January, another sign of an inflexible labor market even as the Federal Reserve steps up its tightening campaign.

    New jobless claims came in at 201,000, beating expectations of 225,000, according to data released Thursday by the Labor Department. This was a stronger than expected reading in the face of increased interest rates.

    Central bankers are keeping a close eye on signs of weakness in the labor market as they attempt to bring inflation down from historic levels. When the economy weakens, unemployment claims increase, which may indicate a recession. However, jobs data has proved strong in recent months, raising hopes that the Fed’s tightening will not lead to a wave of layoffs or otherwise a broader economic recession. In contrast, Fed Chairman Jerome Powell said during a highly anticipated policy press conference on Wednesday that he is looking for stronger economic activity, which could prompt the Fed “to do more with rates.”

    The Fed has warned about a stronger-than-expected US economy, and central bankers now expect the economy to grow 2.1% this year, up from June’s 1.0% estimate.

  • Fox, News Corp shares rise after Chairman Rupert Murdoch steps down

    Investors in Fox (FOX) and News Corp. (NWS, NWSA) looked pleased Thursday after the companies announced that Chairman Rupert Murdoch has resigned from his leadership roles, having built and shaped a global media empire over a span of seven decades. Gave. The modern era of news media. Murdoch’s eldest son Lachlan, who had served as co-chairman of News Corp., would become chairman of that company and remain as executive chairman and CEO of Fox.

    Lachlan’s ascension ended questions of his father’s succession and cemented Lachlan’s role as the new leader of the kingdom. Shares of Fox rose more than 2% and News Corp shares rose 0.8% in morning trading Thursday.

    “Throughout my professional life, I have been connected to news and views every day, and that will not change. But the time is right for me to take on a different role,” Murdoch wrote in a memo to staff. Murdoch, 92, will be appointed honorary chairman of both companies.

  • Stock trends in morning trading

    Here are some of the stocks leading Yahoo Finance’s trending ticker page in morning trading Thursday:

    Splunk (SPLK): Shares of Splunk surged more than 20% in morning trading after AI and data-focused cloud computing company Cisco (CSCO) agreed to a $28 billion acquisition, reversing a 3% decline. The all-cash offer to buy Splunk at $157 per share meant the deal would be at a 30% premium. “For Cisco this is a major blow to Palo Alto, Checkpoint, CrowdStrike, Microsoft, Zscaler and others, showing that the tech giants are not sitting idle in this market and are now poised to gain market share in the coming years.” “Making aggressive plays.” Wedbush analyst Dan Ives said in a note Thursday.

    Fox (FOXA) and News Corp (NWS, NWSA): Fox and News Corp investors announced on Thursday that company Chairman Rupert Murdoch has resigned from his leadership roles, ending his more than seven-decade career in which he built a global media empire. Investors in Fox and News Corp seemed quite excited. Murdoch’s son Lachlan will become sole chairman of both boards. The change put to rest questions over Murdoch’s succession and cemented Lachlan’s role as the new leader of the empire. Shares of Fox rose about 3% and News Corp rose 0.8%.

  • Stocks open lower after Fed hints at longer tightening cycle

    Sour sentiment on Wall Street continued into the opening bell on Thursday as investors digested the Fed’s hawkish message of keeping rates high for longer.

    The S&P 500 (^GSPC) declined 0.6%, while the Dow Jones Industrial Average (^DJI) lost 0.3%, or about 100 points. The tech-heavy Nasdaq Composite (^IXIC) declined 0.9%

  • Broadcom, Clavio, Nvidia: Stocks are trending in premarket trading

    Here are some of the stocks leading Yahoo Finance’s trending ticker page in premarket trading Thursday:

    Broadcom (AVGO): Broadcom shares fell 6% in premarket trading after it was reported that Google executives had discussed leaving the company as a supplier of artificial intelligence chips as early as 2027.

    Klavio (KVYO): Klaviyo shares fell 3%, a day after the marketing automation firm made its stock market debut.

    Nvidia (NVDA): Shares of the chip giant fell 2% as many rate-sensitive stocks took a hit after the Fed’s tough stance.

    FedEx (FDX): FedEx shares rose 5% a day after it posted a profit as it took customers from rivals.

  • According to Fed estimates, stocks are likely to fall further

    Wall Street stocks looked likely to extend their losses on Thursday as investors debated how long it might take for Fed policymakers to cut interest rates from their high levels.

    Futures tied to the Dow Jones Industrial Average (^DJI) were down 0.50%, or 175 points, while S&P 500 (^GSPC) futures fell 0.70%. Nasdaq 100 futures fell 0.92%

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