US Market tumbles ahead of Jackson Hole symposium

23 Aug 2022 , 08:21 AM

The US stock market finished session deeply in negative territory on Monday, 22 August 2022, continuing the prior weeks negative performance, as risk aversion selloff across the board amid rising concerns about the outlook for interest rates as well as caution ahead of this weeks economic symposium in Jackson Hole, Wyoming. At the close of trade, the Dow Jones Industrial Average index stumbled 643.13 points, or 1.91%, to 33,063.61. The S&P500 index was down by 90.49 points, or 2.14%, to 4,137.99. The tech-heavy Nasdaq Composite Index decreased by 323.64 points, or 2.55%, to 12,381.57. All 11 S&P sectors ended lower, with consumer discretionary sector was the worst performer, erasing 2.84%, followed by information technology (down 2.78%), communication services (down 2.67%), and financials (down 2.2%) issues. Investors continued withdrawing profit off the table amid caution ahead of this weeks economic symposium in Jackson Hole, Wyoming, for additional clues about the pace of future interest rate hikes, after Fed officials signals more hawkish rate hikes ahead. Fed officials last week reiterated their committement to bringing prices down, sparking concerns among investors that a dovish pivot is less likely than previously thought. Recent comments from some Fed officials have indicated the central bank will continue to raise interest rates aggressively at its next meeting in September. St. Louis Fed president James Bullard said recently that he expects a third straight 75 basis point interest rate hike in September, while San Francisco Fed colleague Mary Daly said that raising rates by 50 or 75 basis points next month would be reasonable. Among individual stocks, Netflix shares plunged after CFRA downgraded the stocks rating, citing concerns about a likely drop in companys earnings inthe second half of the current financial year. Ford shares plunged after the company said it will lay off 3,000 workers to fund its shift to electric vehicles. Among Indian ADR, Dr Reddys Labs declined 0.6% to $51.91, Tata Motors fell 3.5% to $28.25, WNS Holdings declined 1.9% to $85.81, HDFC Bank fell 1.5% to $62.13, ICICI Bank fell 2.2% to $21.36, and INFOSYS was down 1.3% to $19.52. Azure Power Global dropped 1.8% to $10.83 and Wipro was down 2.6% to $5.19. Powered by Capital Market – Live News