Wall Street stocks are declining, putting the S&P 500 index on course to end its four-week winning run.
After a mixed bag of corporate earnings, more solid employment data, and a steady retail sales report, investors may already be looking ahead to the Federal Reserve’s annual Jackson Hole conference in Wyoming the following week for clues as to when and by how much the U.S. central bank may raise its key lending rate.
At 10:15 a.m. Eastern, the S&P was down 46 points, or 1.1%, to 4,237, while the Dow Jones Industrial Average was down 0.6%. The Nasdaq fell 1.7%, with technology firms among the worst performers.
Additional interest rate increases are forthcoming
This week’s release of the minutes from the Federal Reserve’s July meeting indicated that inflation remains too high and that the central bank will continue to raise interest rates.
This year, the Fed has increased interest rates twice by 0.75 percentage points, which is three times the typical increase. Forecasters anticipate a raise at the board’s September meeting, but whether it will be another three-quarters of a point or less will depend on whether the Fed is more persuaded by a historically robust job market or an economy that has declined for two consecutive quarters.
Friday, the mall-based sports gear retailer Foot Locker selected former Ulta Beauty CEO Mary Dillon as its new chief executive officer, replacing Richard Johnson.
Bed Bath & Beyond stock plummeted 40% after prominent activist investor Ryan Cohen revealed his exit from the stock. General Motors climbed after resuming its dividend, while Foot Locker jumped after removing its CEO and reporting results that beyond Wall Street’s expectations.
Bitcoin plunged more than 8% to $21,506.00 per coin, pulling down the whole cryptocurrency market.
In computerized trading on the New York Mercantile Exchange, the price of U.S. crude fell by $1.40 per barrel, to $89.10 a barrel. On Thursday, the contract increased $2.39 to $90.50. Brent crude, the worldwide benchmark price, slid $1.62 per barrel to $94.97 in London. It increased by $2.94 the day prior to reach $96.59