Global markets update: Fed interest rate hike fears pull down US stocks

US stocks on Thursday were pulled down by fears of interest rate hike by the Federal Reserve. Rise in bond yields also fuelled the selloff in shares.

The S&P 500 fell 0.33% at 4,389.6. The Dow Jones Industrial Average dropped 0.42% at 34,619.25 points. The Nasdaq Composite lost 0.67% at 13,384.01.

The Fed minutes released on Wednesday showed that the central bank has likely not finished raising interest rates.

“Most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” the minutes said.

The S&P 500 bank index edged down 0.2%.

The 10-year treasury yield rose at 4.28% after touching its highest level since October. 

A labor department report on Thursday showed the number of Americans filing new claims for jobless benefits fell in the last week. It suggests that the labor market remains tight despite the Fed’s efforts to cool the economy and inflation.

Shares of Meta Platforms sank 3.1% and Tesla 2.8%. Apple slipped 1.5%.

Shares of Exxon Mobil gained 1.9% and ConocoPhillips 1.8%.

Cisco Systems  jumped 3.3%.

Currencies

The US dollar fell at 146.18 Japanese yen from 146.24. Against the euro, it fell at $1.0858 from $1.0880.

Energy prices

The US benchmark crude oil for September delivery added $1.01 at $80.39 a barrel on Thursday. Brent crude for October delivery rose 67 cents at $84.12 a barrel. Natural gas for September delivery rose 3 cents at $2.62 per 1,000 cubic feet.

Bullion

Gold for December delivery plunged $13.10 at $1,915.20 an ounce. Silver for September delivery added 18 cents at $22.72 an ounce.

 

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Updated: 18 Aug 2023, 02:14 AM IST