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Wall Street indices edged lower on Thursday, September 22, as investors traded cautiously with the growing concerns over higher rates. The market participants now anticipate that the hawkish move by the central bank could cause a recession.
The S&P 500 fell 0.84 per cent to 3,757.99. The Dow Jones was down 0.35 per cent to 30,076.68. The NASDAQ Composite lost 1.37 per cent to 11,066.81, and the small-cap Russell 2000 fell 2.26 per cent to 1,722.31.
The Federal Reserve had raised the interest rate by 0.75 points on Wednesday, September 22, while signaling that the rate may stay at a higher level for some time. In addition to that, Fed Chair Jerome Powell said that the Federal Reserve would back aggressive rate hikes in the coming months to tame inflation.
Meanwhile, the number of new unemployment benefit claims rose at a moderate rate last week, the Labor Department report of September 22 showed, suggesting that the labor market stayed tight despite Fed's aggressive attempt to cool down the demands. Initial claims for unemployment benefits claims increased by 5,000 to 213,000 in the prior week.
The healthcare and communication services sectors of the S&P 500 index stayed in the positive territory on Thursday, September 22. Nine of the eleven segments of the index retreated. Consumer discretionary and information technology were the bottom movers.
Shares of FedEx Corporation (FDX) rose more than one per cent in the intraday trading session after the transportation and shipping company posted a growth of more than five per cent YoY in its quarterly revenue.
Darden Restaurants, Inc. (DRI) lost more than four per cent in the intraday session on September 22, after the restaurant operator announced its latest quarterly earnings results.
In the technology sector, Taiwan Semiconductor Manufacturing Company Limited (TSM) decreased by 1.96 per cent, NVIDIA Corporation (NVDA) lost 1.96 per cent, and Oracle Corporation (ORCL) plummeted by 1.08 per cent. ASML Holding N.V. (ASML) and Cisco Systems, Inc. (CSCO) ticked down 3.05 per cent and 1.06 per cent, respectively.
In consumer discretionary stocks, Amazon.com, Inc. (AMZN) slumped 1.04 per cent, Tesla, Inc. (TSLA) declined 4.06 per cent, and Alibaba Group Holding Limited (BABA) plunged 1.09 per cent. McDonald's Corporation (MCD) and Nike, Inc. (NKE) slipped 1.25 per cent and 1.24 per cent, respectively.
In the healthcare sector, UnitedHealth Group Incorporated (UNH) increased by 1.05 per cent, Johnson & Johnson (JNJ) rose by 1.78 per cent, and Eli Lilly and Company (LLY) soared by 4.85 per cent. AbbVie Inc. (ABBV) and Pfizer Inc. (PFE) advanced 1.92 per cent and 1.48 per cent, respectively.
Futures & Commodities
Gold futures were up 0.26 per cent to US$1,680.00 per ounce. Silver increased by 0.94 per cent to US$19.663 per ounce, while copper fell 0.09 per cent to US$3.4640.
Brent oil futures increased by 0.55 per cent to US$90.32 per barrel and WTI crude was up 0.59 per cent to US$83.43.
Bond Market
The 30-year Treasury bond yields were up 3.50 per cent to 3.643, while the 10-year bond yields rose 5.75 per cent to 3.714.
US Dollar Futures Index increased by 0.63 per cent to US$111.045.
