[ad_1]
Traders work on the floor of the New York Stock Exchange during morning trading on February 29, 2024 in New York City.
Michael M. Santiago | Getty Images
of S&P500 Tech stocks fell on Friday and were on track to end the week lower next week, as inflation concerns remain top of mind ahead of next week’s Federal Reserve policy meeting. Stocks are under pressure.
The market composite index fell by 0.6%.of Dow Jones Industrial Average It fell 210 points (0.5%).of Nasdaq Composite It fell by 1%. The S&P 500 is down about 0.3% since the beginning of the week, while the 30 stocks in the Dow and Nasdaq are down 0.2% and 0.7%, respectively.
Tech stocks generally fell. apple and microsoft It fell more than 1%, 2%.shares of Amazon and Google’s parent company alphabet It also fell. Nvidia However, it bucked the trend and rose more than 1%. Chipmakers were thrown into turmoil this week as traders worried about the company’s stock valuation and booked profits on overblown names.
Investors remain extremely cautious following a trove of data released earlier this week. The producer price index, a measure of wholesaler inflation, rose more than economists expected in February.Data helped push benchmarks up 10 year treasury The stock rose about 22 basis points for the week as investors questioned whether recent economic data was too strong for the Fed to ease monetary policy. The Fed will begin a two-day policy meeting on March 19th.
Thierry Wizman, global currency and rates strategist at Macquarie, said recent economic announcements indicate the Fed feels inflation has cooled enough to start lowering by the end of the year, potentially raising long-term borrowing rates. This may cast doubt on whether there is.
“I think the other issue here is it’s not just 2024 and 2025.” [dot plot]Other issues the Fed is considering include markets becoming too frothy, Wisman said, adding that the Fed has indicated that it believes long-term interest rates should rise. There may be,” he said.
Indeed, according to the CME FedWatch tool, federal funds futures are pricing in a 99% chance that the central bank will leave interest rates unchanged at next week’s policy meeting.
Trading volume could be high and prices volatile on Friday as futures and options on stock indexes and individual stocks all expire at the same time in a process known as “triple witching,” which occurs once a quarter.
[ad_2]
Source link
