Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Stock Market Today: Dow Slips After Fed Officials Push Back Against Pivot

Stock Markets Oct 06, 2022 07:26
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
US500
-0.09%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-0.56%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MRVL
-2.41%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TSLA
0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
+0.13%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CCL
+0.40%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Yasin Ebrahim

Investing.com -- The Dow closed slightly lower Wednesday after swinging between gains and losses as Treasury yields resumed their climb after Federal Reserve officials pushed back against bets of a pivot.

The Dow Jones Industrial Average was 0.1% lower, or 8 points, the Nasdaq was down 0.3%, and the S&P 500 fell 0.2%.

San Francisco Federal Reserve President Mary Daly said that the Fed’s goal to keep tightening monetary policy until interest rates are at a restrictive level “hasn’t really changed,” easing investor bets on a Fed pivot.

Interest rates had reached a point that was potentially a “little bit restrictive, or just at neutral,” Daly added, though insisted that “more rate increases [was] necessary” to bring inflation down.

The ongoing hawkish remarks from the San Francisco Fed president arrived as data showed U.S. services activity rebounded by more than expected in September, and the private labor market remains robust pointing to underlying economic strength.

Treasury yields climbed, but tech stocks fought back from session lows as dip buyers helped big tech move off session lows.

A climb in chip stocks also supported the broader move off the lows in tech, with Marvell Technology Group Ltd (NASDAQ:MRVL) and Taiwan Semiconductor Manufacturing (NYSE:TSM) up more than 2%.

Twitter Inc (NYSE:TWTR), meanwhile, fell 1% after rallying more than 22% a day earlier as the social media giant confirmed Tuesday that Musk had agreed to revive the deal to buy the company for $54.20.

The deal is expected to close “without any major issues over the next few weeks,” Wedbush said in a note, though noted that now the “hard part will be fixing it [Twitter] with monetization and subscriber engagement.”

Tesla Inc (NASDAQ:TSLA), however, closed more than 3% lower on expectations that Musk may have to sell more Tesla shares to fund the $44 billion Twitter deal.

As well as a fall in Tesla, consumer discretionary stocks were also weighed down by weakness in cruise line stocks.

Carnival Corporation (NYSE:CCL) fell 4%, while Royal Caribbean Cruises (NYSE:RCL) was down 1%, but Norwegian Cruise Line Ltd (NYSE:NCLH) cut losses to end the day flat.

The stumble in the market following two days of gains comes ahead of the monthly Friday's monthly jobs report that, if surprises to the upside, may pour cold water on hopes for a Fed pivot.

Stock Market Today: Dow Slips After Fed Officials Push Back Against Pivot
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email