Stocks fell in a volatile trading session on Monday ahead of the Federal Reserve’s two-day policy meeting that begins Tuesday.
The Dow Jones Industrial Average is down 50 points, or 0.18%, last time. Monday’s 30-stock index oscillated between a 263-point loss at lows and a high of nearly 130 points. The S&P 500 and Nasdaq Composite were down 0.18% and 0.15% respectively.
Yields rose ahead of the Fed’s likely decision later this week to raise its benchmark rate by another 75 basis points to curb inflation, with 10-year Treasury yields hitting an 11-year high above 3.51%. Did.
After faint hopes that the Fed might launch an aggressive tightening campaign over the summer, investors again sold off stocks out of fear that the central bank would go too far and plunge the economy into recession. I’m here.
Investors are keeping an eye on the Fed’s policy meeting due to start on Tuesday, when the central bank is expected to raise interest rates by another 75 basis points. Investors are also keeping an eye on corporate earnings guidance before the next reporting season begins in his October.
“We are taking a wait-and-see approach and the market is waiting for some bullish or bearish catalyst to push us out of this trading range,” said Adam Serhan, CEO of 50 Park Investments. said. “The market is struggling for direction and that is the basic news.”
Six of the S&P 500’s 11 major sectors traded higher or flat, leading to gains in consumer discretionary, industrials and materials. Financial stocks also rose as some investors bet that the rate hike could be positive for bottom line earnings. Health care lagged behind, down 1.3%.
Stocks fell last week as investors reacted to reports of higher-than-expected inflation and dire warnings from FedEx about a “significantly worsening” global economy. The major average hovered near a two-month low, recording his fourth weekly loss in five weeks.
Aside from the Federal Reserve meeting, there are several economic data releases this week, including Tuesday’s August housing starts and Thursday’s first unemployment claims.
— CNBC’s Patti Domm contributed to the report.
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