Wall Street extended losses on Friday, September 16, marking their biggest weekly losses in two months as traders moved away from risk-bet assets. Inflationary pressure, rate hike concerns, and gloomy guidance from corporates dampened market sentiment.
The S&P 500 fell 0.72 percent to 3,873.33. The Dow Jones was down 0.45 percent at 30,822.42. The NASDAQ Composite lost 0.90 percent to 11,448.40, and the small-cap Russell 2000 fell 1.48 percent to 1,798.19.
A flurry of economic data this week, including the CPI, producer price index, and retail sales data bolstered bets that the Federal Reserve could stick to its aggressive monetary plans for the near term. future.
Investors, who expected the central bank could turn dovish at their upcoming meeting, now expect another 75 basis point hike at the Fed’s meeting next week.
Only the consumer staples sector was in the green in the S&P 500 index on Friday, September 16. Ten of the index’s 11 segments remained in negative territory, with the industrials and technology sectors lagging behind.
Shares of FedEx Corporation (FDX) lost more than 21 percent in Friday’s intraday session after the transportation company said its latest quarter’s earnings fell short of earlier expectations. In addition to that, FedEx also said it was closing offices.
NCR Corporation (NCR) fell more than 21 percent in intraday trading on September 16, after the consulting and technology firm announced its plans to split into two separate publicly traded firms. According to its plans, one company will engage in digital commerce, while the other will remain in its ATM segment.
In the consumer staples sector, PepsiCo, Inc. (PEP) added 0.66 percent, Philip Morris International Inc. (PM) gained 1.63 percent, and Anheuser-Busch InBev SA/NV (BUD) rose 0.94 percent. Mondelez International, Inc. (MDLZ) and Dollar General Corporation (DG) advanced 1.23 percent and 1.25 percent, respectively.
Among industrial stocks, United Parcel Service, Inc. (UPS) was down 4.71 percent, Union Pacific Corporation (UNP) was down 2.96 percent, and Deere & Company (DE) was down 1.23 percent. Caterpillar Inc. (CAT) and The Boeing Company (BA) fell 1.65 percent and 3.67 percent, respectively.
In the technology sector, Apple Inc. lost. (AAPL) by 1.10 percent, Oracle Corporation (ORCL) fell by 2.01 percent, and Salesforce, Inc. (CRM) fell 2.11 percent. Adobe Inc. (ADBE) and ServiceNow, Inc. (NOW) fell 3.12 percent and 2.24 percent, respectively.
Futures and Commodities
Gold futures rose 0.35 percent to US$1,683.25 an ounce. Silver rose 1.55 percent to US$19.567 an ounce, while copper rose 1.44 percent to US$3.5400.
Brent oil futures were up 0.79 percent at US$91.56 a barrel and WTI crude was up 0.26 percent at US$85.32.
Bond Market
30-year Treasury bond yields rose 1.14 percent to 3.519, while 10-year bond yields fell 0.16 percent to 3.453.
The US Dollar Futures Index was down 0.03 percent at US$109.415.