Thursday, July 6, 2023

US markets decline as Fed minutes point to impending rate increases

 In New York: Money Road stocks plunged Wednesday as US Depository security yields pushed higher and minutes from the Central bank's June meeting flagged the chance of more financing cost climbs ahead.

Even though the Fed voted last month to stop raising rates after 10 hikes in a row, the minutes of the Fed meeting showed that policymakers think two hikes in 2023 will be needed to bring inflation back down.

A note from Oxford Economics stated, "Almost all officials expected additional rate hikes this year." The Fed's hawkish wing is making the most noise, indicating that the central bank is still tightening monetary policy.

To 34,288.64, the Dow Jones Industrial Average lost 0.4%.

The tech-heavy Nasdaq Composite Index also fell 0.3% to 13,791.65, while the broad-based S&P 500 fell 0.2% to 4,446.22.

At the beginning of July, stocks have been volatile after a strong second quarter.

Significant records were in the red the majority of the day as security yields climbed, proposing financial backers expect more loan cost increments.

After announcing a 19% increase in US car deliveries in the second quarter, General Motors saw a gain of 1.2%. This was due to continued strong consumer demand and improved car inventories.

As the parent company of Facebook, Meta Platforms, got ready to launch Threads, a brand-new app that has been compared to a Twitter competitor, its stock price increased by 2.9%.

After labor negotiations with the Teamsters failed, UPS fell 2.0 percent, raising the possibility of a strike next month.

"Return to the table to finalize this deal," UPS urged the union, which has been organizing rallies with workers demanding better pay and benefits.

Driving semiconductor shares were feeling the squeeze, including Progressed Miniature Gadgets, Micron Innovation and Intel. All of them fell by at least 1.6%.

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