Stocks are falling, heading for a third straight losing week

US stocks extended losses Friday morning as the aggressive sell-off that plagued the month ahead of the long weekend continued.

S&P 500 Index (^ The Salafist Group for Preaching and Combat) and the Dow Jones Industrial Average (^ DJIThey each sank 0.5% after struggling for direction on the open. Nasdaq Technology Heavy Composite (^ ix) declined 0.9%.

US stock and bond markets will be closed on Monday, December 26, in observance of Christmas Day. Bond markets will close an hour earlier than usual on Friday at 2pm ET.

PCE Core Price Index – The Fed’s preferred inflation measure – rose in 5.5% annualized in November And 0.1% from the previous month, on par with consensus estimates of economists surveyed by Bloomberg. Calculate the mean sign of the readings 6.1% and 0.3%, respectively, in October.

Core personal consumption expenditures, which exclude the volatile food and energy components, rose 4.7% on the year and 0.2% on the month.

Meanwhile, personal spending stagnated in November to the weakest reading since July.

Investors will also get reads on the latest University of Michigan consumer sentiment survey and new home sales.

“The Fed’s preferred measure of inflation continues to decline, which is good news for their top targets, but unfortunately for the market, this is happening at the same time that consumers continue to cut their spending,” independent advisor and chief investment officer Chris Zaccarelli said in a note.

He added, “At this point, the market was backed into a corner, since strong spending and higher growth are indirectly bad for the stock market (because it is likely to trigger a stronger Fed reaction), while slower spending and growth are indirectly bad.” directly to the stock market, because it implies a decline in corporate profits.”

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After the Fed Final policy decision for 2022 Last week, strategists noted that the most surprising data among economic forecasts from officials was an upward revision of their core personal consumption expenditures forecast to 3.5% from a prior 3.1% at the end of 2023. This signals to many analysts that the Fed will need to maintain on rates at a high final rate through 2023.

“We expect the Fed to revise its forecasts as soon as possible in March, although progress will be slow at first; policymakers seem to have been hurt by the experience of the last year and a half, and they will want to make sure that they are safe,” said Ian Shepherdson, chief economist at Pantheon. On a note: “They’re not cutting their numbers prematurely.” “The markets won’t wait.”

NEW YORK, NY – DECEMBER 21: People walk near the New York Stock Exchange during afternoon trading. (Photo by Michael M. Santiago/Getty Images)

Friday’s moves come after a Previous rough trading day That saw the S&P, Dow, and Nasdaq lose 1.4%, 1%, and 2.2%, respectively. Investors were spooked by a warning from chipmaker Micron Technology about the semiconductor industry, a strong labor market and consumer spending data that confirmed expectations for interest rates “higher for longer”.

Oil prices rose on Friday and headed for a big weekly gain as investors expected a Low supply of Russian crude. That helped calm concerns about lower US transportation fuel demand ahead of a winter storm moving toward North America. West Texas Intermediate crude futures — the US benchmark — rose 2% to $79 a barrel.

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US Treasury yields rose, while the US dollar index fell against a basket of other currencies.

Alexandra Semenova is a correspondent at Yahoo Finance. Follow her on Twitter @tweet

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