Reporters reported that The Dow Jones Industrial Average fell more than 1,000 points, falling more than 32,000 for the first time in four days as investors fear US inflation has begun. affect the operating results of listed companies
At 0.50 a.m. Thai time, the Dow Jones Industrial Average was at 31,531.00 points, minus 1,055.00 points or 3.24%.
The retail stocks posted disappointing results. being affected by rising fuel costs increase the cost of transportation And it indicates that inflation in the US is starting to affect corporate profits.
Target share price The U.S. retail giant plunged nearly 25% today after it released first-quarter earnings that were lower than analysts’ expectations.
Loews share price The U.S. home furnishings giant fell more than 3% after it reported lower-than-expected first-quarter revenue.
In addition, Wall Street stocks were under pressure today. After Federal Reserve Chairman Jerome Powell insisted the Fed would not hesitate in raising interest rates until inflation was able to curb the economy.
The CME Group’s FedWatch Tool indicates that investors are now 100 percent weighed on the Fed’s rate hike of at least 0.50% at the other two monetary policy meetings, in June and July. After the Fed raised interest rates by 0.50% in May for the first time since May 2000. And it was the biggest interest rate hike in more than 20 years.
At the same time, the Fed plans to reduce the size of the balance sheet. (Quantitative Tightening : QT) which will start operations from June. The Fed will reduce its balance sheet by $47.5 billion a month. And after three months, the Fed will increase the balance sheet reduction to $95 billion/month.