Reporters reported that today (Sept. 15) the Dow Jones index is fluctuating. After the adjustment in the first phase, at 11:46 pm Thai time, the Dow Jones Industrial Average stood at 31,033.00 points, minus 117.00 points or 0.38%, as investors were looking at the US economic data. This indicates the direction of the US Federal Reserve (Fed) interest rates.
Energy stocks fell leading the market. As oil prices plummeted more than 3% today, financials have jumped against the market as they benefited from rising interest rates.
The US released better-than-expected retail sales data in August. While the number of people applying for unemployment benefits was lower than expected last week. The New York Fed said its manufacturing index was higher than expected in September. And the Philadelphia Fed revealed lower-than-expected manufacturing indices.
Furthermore, the trade was put under pressure by a rebound in US Treasury yields. among forecasts that the Fed will raise interest rates to at least 0.75% at next week’s monetary policy meeting.
The two-year US Treasury yield is sensitive to the Fed’s monetary policy. It continues to rise above 3.8% today and is above the 10-year and 30-year US Treasury yields.
Short-term bond yields bounce higher than long-term yields in the inverted yield curve of the US bond market, signaling a recession. Amid the Fed’s accelerating rate hike
CME Group’s latest FedWatch tool indicates investors weighed 80% that the Fed would raise interest rates by 0.75% to 3.00-3.25% at the 20- September 21 and weighted by 20% relative to the Fed hike. Interest rates increased by 1.00%
If the Fed raises interest rates by 0.75% in September, it will raise interest rates by 0.75% for the third time after raising 0.75% in both June and July.
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