JPMorgan CEO Jamie Dimon on Monday warned that the U.S. "We believe the Fed will raise interest rates one or two more times until the Fed funds rate reaches 4% and then take a pause, at which point the Fed will assess the damage done," he added. "This is an awful stock market environment that is grappling with a weakening economy, uncertainty over earnings and how long the Fed's tightening will last, and sentiment issues with an extremely risk averse investor psychology," said David Bahnsen, chief investment officer of The Bahnsen Group, in a Tuesday note. economy falls into a recession or experiences a soft landing. The path of the central bank's interest rate increases will determine whether or not the U.S. On Friday, September retail sales will give further insight into consumption. That's followed by the September consumer price index Thursday. On Wednesday, the producer price report will be released. Investors are awaiting a few key inflation reports out later in the week that will inform how aggressively the Federal Reserve will hike interest rates going forward to tame inflation. Stocks fell off highs of the day and bond yields ticked up when the Bank of England said in the afternoon its market intervention will be over soon, and that pension funds have just three days to rebalance positions. Bond yields move inversely to prices, and a basis point is one hundredth of one percent. Yields stayed high on Tuesday with the 10-year yield up about 5.8 basis points at 3.943% at market close. 10-year Treasury neared the key 4% level overnight. The Dow Jones Industrial Average rose 36.31 points, or 0.12%, to close at 29,239.19, bolstered by jumps in Amgen and Walgreens Boots Alliance.īond prices also fell, and the yield on the U.S. Tuesday's losses notched the fifth day in a row of declines for both indexes.
The Nasdaq Composite fell 1.10% to 10,426.19, its lowest close since July 2020. The S&P 500 slipped 0.65% to close at 3,588.84 after rebounding from a multiyear low earlier in the session. stocks fell Tuesday, reversing gains from earlier in the day as investors looked ahead to key inflation data out later in the week that will give the Federal Reserve updated information on the state of the U.S.
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