US Market extends losses after Powell hawkish remarks

30 Aug 2022 , 09:29 AM

The US stock market finished session deeply in negative territory on Monday, 29 August 2022, as investor sentiment remained sour after Fed Chairman Jerome Powell made it clear in his Jackson Hole speech that the central bank must continue raising interest rates and keep them at an elevated level until it is confident inflation is under control. Federal Reserve Chair Jerome Powells speech at the Jackson Hole economic symposium, were more hawkish than investors would have liked, signaling the Fed is likely to continue raising interest rates aggressively and maintain rates at a high level for an extended period. At the close of trade, the Dow Jones Industrial Average index dropped 184.41 points, or 0.57%, to 32,098.99. The S&P500 index was down 27.05 points, or 0.67%, to 4,030.61. The tech-heavy Nasdaq Composite Index decreased by 124.04 points, or 1.02%, to 12,017.67. Shares of technology and growth companies such as Apple Inc, Microsoft Corp and Tesla Inc were down, hit by rising U.S. Treasury yields. Energy stocks jumped in tandem with oil prices rose on news of a potential OPEC+ supply cut. Shares of Diamondback Energy, Marathon Oil, Occidental and Exxon Mobil rose from 2.3% to 4%. Shares of Honda moved higher after it joined forces with LG Energy Solution to build a new battery production plant for electric vehicles in the U.S. The companies, which plan to invest $4.4 billion, aim to begin mass production of advanced lithium-ion battery cells by the end of 2025. Shares of chemical maker Dow dropped after KeyBanc downgraded it to underweight from sector weight, citing an economic slowdown, especially in Europe, could hurt demand for Dow and squeeze the companys profit margins. Among Indian ADR, Dr Reddys Labs fell 0.1% to $51.98, Azure Power Global fell 44.1% to $5.85. WNS Holdings shed 0.3% to $85.44, and Wipro was down 0.6% to $5.03. HDFC Bank fell 0.5% to $60.70, and INFOSYS was down 1.3% at $18.39. Tata Motors added 0.1% to $28.60 and ICICI Bank added 0.2% to $21.47. Powered by Capital Market – Live News