Growth stocks are back on track! Jump in to get the fresh stock market outlook!
Dow goes down
On Wednesday, the Dow headed south because the key US bank had interest rates increased and also came up with a less dovish outlook on tightening than a lot of investors had hoped for.
As a matter of fact, the Dow Jones Industrial Average tumbled by 1.49%. Additionally, the S&P 500 went down by 1.62%. As for the Nasdaq Composite, it decreased by 2.17%.
A sea of red swallowed Wall Street on worries that the major US bank could overshoot on its monetary policy, even as the Fed downgraded its outlook on rate lifts next year against the backdrop of hopes for a slower tempo of surge as well as inflation.
The key American financial institution had its 2019 median estimate for interest rates reduced to 2.9% versus the previous forecast of 3.1%, dropping a hint at two rates lifts next year. It turns out to be below the three rate lifts earlier specified in the major bank’s September projections.
Some experts told that the major bank’s projections on an array of measures, including inflation, economic surge, and unemployment, didn’t appear to be as dovish as anticipated.
Selling was affected by a slump in tech, provoked by a decrease in Facebook after news that DC attorney general Karl Racine came up with a claim against the social media giant. He blamed it for sending its user's data right to Cambridge Analytica.
Energy stocks were still on the backfoot even as American crude prices managed to regain some of their losses from Tuesday despite the fact the Energy Information Administration came up with a smaller-than-anticipated draw in oil supplies.
In addition to this, transports were affected by a 12% decline in FedEx because it had its outlook on earnings downgraded, referring to a deceleration in global trade in the face of the US-China trade conflict.
AMC spiked more than 100% on Wednesday, the struggling brick-and-mortar retailer Bed Bath & Beyond jumped by about 51%.
The biggest newsmaker of the stock market in the past few days has been Virgin Galactic. The stock jumped by more than 20% in premarket trading on Monday.
The United States will release retail sales and producer inflation (PPI index) numbers at 15:30 MT time on June 15.
Gold has plunged amid the stronger US dollar as investors await the Fed’s meeting this week.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?