2023-10-19 14:57:59
The Dow Jones Index fell more than 100 points as investors sold off risk. Before Mr. Jerome Powell, Chairman of the Federal Reserve (Fed), gave a statement today.
In addition, investors are concerned about the release of lower-than-expected numbers of people applying for unemployment benefits. This indicates a strong labor market. and will be a factor supporting the Fed’s interest rate increase.
As of 9:33 p.m. Thai time, the Dow Jones Industrial Average was at 33,536.63 points, down 128.45 points or 0.38%.
The U.S. Department of Labor said initial jobless claims fell 13,000 to 198,000 last week. This was the lowest level in nine months and below analysts’ expectations of 210,000.
Initial claims for unemployment benefits fell below 210,000 for the fifth week in a row.
Investors will be watching Powell’s speech at the Economic Club of New York today for signs of the Fed’s interest rate outlook.
In this regard, the said speech This will take place at 12:00 noon US time. Or tonight at 11:00 p.m. Thai time, it is considered Mr. Powell’s final comment before Fed officials begin entering the Blackout Period on Saturday. this And before the Fed holds its monetary policy meeting (FOMC) on 31 Oct.-1 Nov.
Fed regulations prohibit Fed officials from making public comments. or giving an interview during the Blackout Period about monetary policy It begins on the second Saturday before the FOMC meeting and ends on the Thursday after the FOMC meeting.
Wall Street was pressured by the surge in US government bond yields. The yield on the 10-year US government bond rose close to 5% today after surpassing 4.9% yesterday for the first time since 2007, while the yield on the 30-year US government bond broke through. 5%
In addition, the yield on 2-year government bonds is sensitive to the Fed’s monetary policy. Reaching the highest level since 2006
Investors put almost 100% of their weight in the forecast. Fed to hold interest rates steady at November meeting and add weight to the expectation that the Fed will raise interest rates in December. This was the last monetary policy meeting of this year. After the United States revealed strong economic numbers
The latest CME Group’s FedWatch Tool indicates that investors give a 97.2% weight to the Fed to maintain interest rates at 5.25-5.50% at the Oct. 31-Nov. 1 meeting.
Moreover, investors gave 40.8% weight to the Fed to raise interest rates by 0.25 percentage points to 5.50-5.75% at its Dec. 12-13 meeting, after giving it just 26.3% weight last week.
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