US stocks extended their downtrend on Monday after stocks posted their first consecutive weekly decline since late September.
The S&P 500 Index (^GSPC) fell 1.2%, while the Dow Jones Industrial Average (^DJI) fell around 285 points, or 0.9%. The tech-heavy Nasdaq Composite (^IXIC) decreased by 1.8%.
Monday’s move followed a sell off last week occurred after Federal Reserve officials increase by half a percentage point to their overnight policy rate. Fed Chairman Jerome Powell also emphasized that rate hikes will continue into the new year and policy will remain restrained as long as necessary to contain high inflation – even if that means consequences. economy.
The S&P 500 fell 2.1%, the Dow 1.7% and the Nasdaq 2.7% for the week.
“The data showing that inflation cooled may have helped the market rally in the short term, but the Fed’s steadfast position with Mr. Powell’s view that interest rates can stay high for a while. The long run may convince some investors,” Chris Larkin, managing director of trading at Morgan Stanley’s E*TRADE, said in a note.
In other parts of the market, US Treasury yields edged higher, while the US dollar index fell. Oil rose, with West Texas Intermediate (WTI) crude futures up more than 1% to trade above $75 a barrel.
of Tesla (TSLA) stocks fluctuated after rising and falling up to 3% earlier in the session following a Twitter poll by CEO Elon Musk asking whether he should step down as head of the social media platform he recently acquired. Oppenheimer downgrades stock and call the feelings “heavily hurt”.
Last week, Tesla shares plunge 16% — marking the worst week since the start of the COVID-19 pandemic in March 2020 — due to concerns about Musk’s management of Twitter and Tesla stock sales.
Megacaps are also under pressure, with Apple (AAPL), Microsoft (MSFT) and Alphabet (GOOG) each time a decrease of more than 1%. Shares of Facebook’s Native Meta Platform (META) fell 3.8% after the European Union charged the company violate antitrust laws by distorting competition in the online classified advertising market.
AMC Entertainment (AMC) sinks below $5lowest since March 2021.
The company announced Monday that it raised over $162 million from AMC Preferred Equity (APE) units since the program’s inception a few months ago, using the proceeds to repay debt and fund strategic acquisitions.
Elsewhere, Disney’s (dis) stock plunges 4.6% after “Avatar: The Way of Water” missed industry expectations of over $170 million on opening weekend sales.
Shares of Coinbase (COIN) hit a record low of $34.64 during the session and fell more than 3.5% in afternoon trading.
The US central bank’s message of limited, sustained monetary policy has dampened hopes for a Santa Claus rally — a steady rise in the stock market occurs around year-end holidays. With a second straight week of losses on Friday, the S&P 500 is now down nearly 6% month-to-date.
“It was a one-of-a-kind punch – it was about the Fed and then some weaker economic data – and that paints a picture of a Fed that is ruthless with inflation and perhaps disproportionate. careful with the economy, not realizing how specifically. Kristina Hooper, Invesco’s Head of Global Markets Strategy told Yahoo Finance Live. “The general concern is that we are headed for a recession based on what the Fed has done, and above all, the Fed is willing to do more.”
Before the market closes for a long Christmas weekendinvestors are in a economic lineup and busy income that could offer further hints about the direction of Fed policy in the new year.
This week’s economic calendar will bring investors the latest personal consumption expenditures price index – or PCE – which is the Fed’s preferred inflation gauge, as well as another reading on GDP, a series of data Housing data and the Conference Board’s measure of consumer confidence.
Income from Nike (NKE), General Mills (geographic information system), FedEx (FDX), Micron Technology (MU) and Festival Cruise (CCL) are also the highlights of this week.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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