2023-05-03 23:30:37
The Dow Jones New York Stock Exchange closed lower on Wednesday (May 3) after comments by Federal Reserve Chairman Jerome Powell left investors uncertain. Will the Fed continue to raise interest rates?
The Dow Jones Industrial Average closed at 33,414.24 points, a decrease of 270.29 points or -0.80%, the S&P 500 index closed at 4,090.75 points, a decrease of 28.83 points or -0.70%, and the Nasdaq index closed at 12,025.33 points, a decrease of 55.18 points or -0.46%.
The market rose at first. After the Fed issued a statement stating that The Fed’s Monetary Policy Committee (FOMC) unanimously raised its short-term interest rate by 0.25% to a range of 5.00-5.25%, as expected, the 10th straight hike since the Fed began its cycle of adjustments. Interest rate hike in March 2022 and signaled that Fed may end interest rate hikes
In addition, the market received initial support from the release of economic data. The Institute for Supply Management (ISM) said its service sector index rose to 51.9 in April, beating analysts’ expectations of 51.8 from 51.2 in March. A level above 50 indicates expansion in the US service sector.
The ISM Services Index comprises 17 industry sectors, including real estate, transportation, construction and mining.
S&P side Global revealed that Purchasing Managers Index (PMI) final US services It rose to 53.6 in April from 52.6 in March, but below the preliminary reading of 53.7. The PMI was above 50, indicating expansion in the US services sector. by expanding for the third consecutive month
The PMI was driven by an increase in employment and new orders. While the business sector has more confidence in the next 12 months.
But the New York Stock Exchange began to decline. After Mr. Powell’s press conference He stated that The Fed sees US inflation as too high. And it’s too early to say. The interest rate hike cycle is over.
In addition, the market is also under pressure. Because investors are not sure Will the Fed’s interest rate hike this Wednesday (May 3) be the last? and worried that higher interest rates would push the economy into a recession.
All stocks in the S&P 500 closed lower, with energy and finance shares the biggest losers. The KBW regional banking stock index fell 0.9 percent.
Individual stocks that fell sharply, such as Advanced Micro Devices (AMD), fell 9.3% after quarterly sales forecasts were lower than expected. Because the PC market is weak.
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