The Dow Jones New York Stock Exchange ended slightly lower on Wednesday (March 8), while the S&P 500 and Nasdaq closed higher after Federal Reserve Chairman Jerome Powell completed his monetary policy address to the House of Commons. Congress on the 2nd day, while investors keep an eye on the release of US non-farm payrolls and inflation data. to assess the direction of the Fed’s interest rates in the future
The Dow Jones Industrial Average closed at 32,798.40, down 58.06 points, or -0.18%, the S&P 500 closed at 3,992.01, up 5.64 points, or +0.14%, and the Nasdaq closed at 11,576.00, up 45.67 points, or +0.40%.
Powell delivered his semi-annual monetary policy and economic conditions address to the House Financial Services Committee yesterday, reiterating that the Fed will accelerate interest rate hikes to stave off inflation. Interest rate hike at March meeting The Fed will take into account information received about the labor market and inflation. If the data suggests the Fed will raise interest rates faster. The Fed is ready to speed up the rate hike.
Mr. Powell said Non-farm payroll figures for February, which will be released on Friday, March 10, are important data. The Consumer Price Index (CPI) and the Producer Price Index (PPI) will be released next week. Before the Fed will hold a monetary policy meeting on March 21-22.
The US released several strong economic data last night. This made investors worried that it might be a factor pushing the Fed to continue raising interest rates. The U.S. private sector payroll rose by 242,000 in February. This was above analysts’ expectations of 205,000 jobs from 119,000 in January.
while the number of job openings The job, which measures demand in the labor market, dropped 410,000 jobs in January. to 10.8 million jobs, less than analysts had expected to drop to 10.5 million jobs. 2022 to 11.2 million jobs from 11.0 million, with strong labor data expected to keep the Fed raising interest rates longer.
Data from CME Group’s FedWatch Tool shows investors are now 80% weighing in on the Fed raising interest rates by 0.50% to a range of 5.00-5.25% at its March 21-22 meeting, up from the 2017-2020 level. 70% on Tuesday and up from 31% on Monday, the day before Mr Powell’s first speech to Congress.
Seven of the 11 sectors that make up the S&P 500 finished in positive territory, led by real estate shares gaining 1.3 percent and technology gaining 0.2 percent, supporting the Nasdaq. Energy tumbles 1% after WTI oil prices fall for second straight day
Tesla shares fell 3% following the report. The US National Highway Traffic Safety Administration (NHTSA) is investigating complaints that the steering wheel of a 2023 Model Y Tesla model Y came off while the driver was driving on the road.
Occidential Petroleum shares rose 2% after Berkshire. Warren Buffett’s Hathaway increases stake in Occidential Petroleum to 22.2%
Investors will be keeping an eye on Friday’s US non-farm payrolls figures for February. While analysts expected The number of jobs increased by only 200,000 in February. After rising more than expected to 517,000 jobs in January.
