Stock Market

Even After The Fed’s Statements, The Impact On The Stock Market

US stock markets are under pressure on Friday after a positive week so far. Ahead of the weekend, interest rates and bearish fears that have resurfaced during the week will be coupled with statements from some central bankers who do not expect a more moderate pace of interest rate hikes. Some investors may be more likely to take profits after the recent rally as the economic data declined in the previous trading day.

Major US indices were down mid-week after a rally that started in mid-July. There was only a slight correction due to the slight rebound from the previous day. The major US index is expected to move slightly above the much-awaited mark of 34,000 points as broker IG forecast that the Dow would fall nearly 0.7 per cent to 33,746 points, about three-quarters of an hour before trading resumes. The technology-heavy Nasdaq 100 was last expected at 13,355 points (minus 1.1 percent).

Traders pointed to statements by Fed members James Bullard of St. Louis and Esther George of Kansas City that the Federal Reserve would raise interest rates until inflation returns to the 2 percent target. In doing so, he lowered market expectations that some weak economic data could prompt US officials to rebound and not be so quick to tighten monetary policy. Since Fed minutes were released mid-week, sentiment in the stock market has been affected as it became clear that the central bank is continuing its tough stance on interest rate hikes, even as the economy slows.

Shares of Bed Bath & Beyond are particularly in focus on Friday from the company. The retail conglomerate’s papers are still in free fall since the exit of active investor Ryan Cohen. After having already lost a fifth of the value on Thursday, the course recently fell more than 40 percent before the market. This year, Cohen’s investment in Bed Bath & Beyond has given several runs for the ailing stock. The investor, who is seen as a role model especially for young investors, has now redeemed his investments by selling millions of shares through his investment firm RC Ventures.

A pre-market price increase of about a fifth led to as much praise for the future Foot Locker boss: along with Mary Dillon, the sports retailer has appointed a big name in the industry. After successfully managing cosmetics chain Ulta Beauty till last year, the veteran manager is to take charge of Foot Locker on September 1. She will replace Richard Johnson, who is retiring. On Friday, the group was also able to score with investors with quarterly figures that were better than expected.

Such was the demand for General Motors shares because, after a pandemic-related break of more than two years, the carmaker wants to pay its shareholders quarterly dividends again – albeit significantly less than before the coronavirus outbreak. Are. Management wants to resume the interrupted share buybacks and increase them to $5 billion.

Agricultural machinery maker Deere & Co, on the other hand, is likely to disappoint investors. Despite a surprisingly strong sales performance, the company’s earnings last quarter fell short of expectations. So the group downgraded its outlook, which put the stock under pressure even before trading officially began.

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