Stocks fell across the board in Wall Street trading on Friday afternoon, setting the market up for another week of heavy losses.
The latest news to discourage traders is from his giants FedEx and General Electric, warning that the downturn in the economy will hurt business.
The S&P 500 is down 1.2% at 12:01. east. The benchmark index fell 5.2% this week, but much of that loss was attributed to Tuesday’s drop following alarmingly high inflation reports.
The Dow Jones Industrial Average fell 293 points (1%) to 30,672 and the Nasdaq fell 1.4% of him. Both indices are also on track for significant weekly losses.
Technology, retailers and industrials suffered the biggest losses.
FedEx Stock:
Parcel delivery service FedEx is down 22.8%, on track for his biggest one-day sell-off on record. in business. In addition, stores and corporate offices are closing, and the business environment is expected to deteriorate further.
Industrial giant General Electric Corp fell 5.2% after its chief financial officer said it was still bogged down by supply chain problems pushing up costs.
Utilities and household goods makers, usually considered low-risk assets, outperformed others in the market.
A worrying corporate update will slow the economy, hitting markets already strained by persistently high inflation and higher interest rates being used to counter it.
Next Rate Hike
The Federal Reserve (Fed) is pushing aggressively to keep inflation at its highest level in 40 years, but it is pushing the brakes too hard and pushing the economy into recession. It raises concerns that you are pushing yourself. The central bank has already hiked rates four times this year, and economists expect another three-quarter jumbo rate hike at his Fed summit next week.
Rising interest rates tend to weigh on stocks, especially in the more expensive technology sector. Tech stocks in the S&P 500 are down more than 25% over the year, and telecom companies are down nearly 35% of him. These are the worst performing sectors within the benchmark index so far this year.
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If interest rates rise, the real estate sector will also take a hit. US average long-term mortgage rates have risen more than 6% for the first time since the 2008 housing crash. Rising interest rates could make an already tight real estate market even more expensive for homebuyers
The Federal Reserve rate hikes appear to have done little to keep inflation in check. Prices for almost everything except gas are still rising, the job market is still hot, and consumers are continuing to spend, all of which will help the economy withstand more rate hikes, according to a report from the government this week. giving ammunition to Fed officials who say they are poised to be
Bond yields rose. Two-year Treasury yields, which tend to follow the Fed’s moves, rose to 3.87% from 3.86% late Thursday. The 10-year Treasury yield, which helps guide the trajectory of interest rates for mortgages and other loans, rose to 3.46% from 3.45% late Thursday.