Concerns about monetary tightening contributing to sold out on Wall Street


Stocks fell sharply in the course of Tuesday’s trading session, adding to the sharp losses posted in the previous session. The Dow initially went against the downtrend, but then joined the Nasdaq and S & P 500 firmly in the negative territory.

Currently, the major averages are protracted near the worst levels of the day. The Dow is down 205.95 points or 0.6 percent at 35,455.00, the Nasdaq is down 310.78 points or 2 percent at 15,102.51, and the S & P 500 is down 60.42 points or 1.3 percent at 4,608.55.

Concerns about the outlook for monetary policy continue market, A two-day meeting of the Federal Reserve is underway.

With inflation remaining rising, the Fed is widely expected to accelerate its schedule to reduce bond purchases.

Many traders expect the Fed to start raising interest rates shortly after it suspends its asset purchase program.

In November, the Ministry of Labor released a report showing that producer prices rose more than expected, as it could add to concerns about monetary policy.

According to the report, the producer price index for final demand rose 0.6% in October and then rose 0.8% in November. Economists expected producer prices to rise by 0.5%.

Due to stronger monthly price increases than expected, the annual rate of increase in producer prices accelerated from 8.8% in October to 9.6% in November.

According to the Ministry of Labor, the year-on-year surge reflects the greatest progress since the 12-month data was first calculated in November 2010.

“The Fed is already focused on prioritizing inflation, so instead of causing a new inflation panic, this report was seen a month ago,” said senior Will Compernor. It’s just another nail in the coffin of the idea of ​​”waiting”. ” FHN Financial Economist.

“Supply chain pressures should ease in the coming months as holiday shopping is over and producers have more time to adjust their capacity, but on producer and consumer prices, he added. The impact is not immediate.

Prolonged worries about the new Omicron variant of coronavirus Sales pressure may also have occurred after the World Health Organization warned that the new variant was spreading faster than the previous strain.

Sector news

Software stocks continue to show the worst performance on the market today, resulting in a 4.4% rise in the Dow Jones US Software Index.

Housing stocks are also showing significant weakness, reflecting the 1.8% drop in the Philadelphia Housing Sector Index.

Commercial real estate stocks have also shown significant weakness in afternoon trading, with the Dow Jones US Real Estate Index down 1.7%.

Semiconductors, networks, and retail stocks are also on a downward trend, and steel stocks are also on a downward trend.

Other markets

In overseas trading, the stock market in the Asia-Pacific region fell sharply on Tuesday. Japan’s Nikkei 225 index fell 0.7%, while Hong Kong’s Hang Seng index fell 1.3%.

Major European markets also turned down in the course of the session. The UK’s FTSE 100 index fell 0.2%, the French CAC 40 index fell 0.7%, and the German DAX index fell 1.1%.

In the bond market, the Treasury is well below its worst level, but at a slightly lower level. As a result, the benchmark 10-year bond yield is the opposite of the price, rising 1.5 basis points to 1.439%.

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Concerns about monetary tightening contributing to sold out on Wall Street

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