The Dow Jones Industrial Average fell nearly 100 points amid concerns that Producer Price Index (PPI) that is higher than expected It will be a factor supporting the US Federal Reserve’s (Fed) interest rate hike and will lead the US economy into recession.
At 8:32 p.m. Thai time, the Dow Jones Industrial Average stood at 29,144.72, minus 94.47, or 0.32%.
The Labor Department said its PPI, a measure of inflation on manufacturers’ spending, rose 0.4% in September from a month ago. It was 0.2% higher than analysts’ expectations, after falling 0.2% in August.
Year-over-year, the PPI rose 8.5 percent in September, higher than analysts’ forecast of 8.4 percent from 8.7 percent in August.
Investors are keeping an eye on the minutes of the September Fed meeting to be released today. and consumer price index (CPI) numbers tomorrow to find an indication of the direction of the Fed’s interest rates
The survey found that the CPI continued to indicate hot inflation in September. It jumped more than 8%, near a 40-year high.
The market was also pressured by the strong dollar. and the rebound in US government bond yields
The strength of the dollar has raised investors’ fears that it will affect the bottom line of listed companies with foreign earnings. The rise in 10-year US Treasury bonds, which are US government bonds used as a reference for global bond prices. This includes the US mortgage interest rate. will make consumers have less money for spending while the cost of paying off the mortgage loan increases And companies will face higher costs of debt settlement. causing these companies to reduce their investment and reduce dividend payments to investors
Tobias Adrian, director of capital markets and monetary policy at the International Monetary Fund (IMF), warned that a shift in investor sentiment could lead to a 20 percent drop in U.S. stock markets.
Adrian’s warning was consistent with the comments made by JPMorgan Chase Chief Executive Jamie Dimon, who warned: The US economy is likely to enter a recession in the next 6-9 months, and the S&P 500 will drop another 20 percent, depending on how the Federal Reserve can manage a gradual slowdown. or collapsed severely