US markets are mixed while investors wait for Fed meetings | Technology

Associated Press

New York (AP) — Equities early in trading on Monday as investors prepare for a two-day meeting of the Federal Reserve Board, which is expected to raise interest rates significantly this week as the central bank fights inflation. It was mixed.

The S & P 500 Index rose less than 0.1% and fluctuated between profits and losses, while the Dow Jones Industrial Average rose 0.2%. The technology-intensive Nasdaq Composite index fell 0.2%.

On Wednesday, most economists expect the Fed to announce a second 0.75 percentage point increase in short-term interest rates. This is a significant increase that has not been implemented since 1994. This puts the Fed’s benchmark interest rates in the following range: 2.25% to 2.5%, the highest since 2018.

The US economy is slowing, but healthy employment shows that it hasn’t fallen into recession yet, Treasury Secretary Janet Yellen told NBC’s “Meet the Press” on Sunday. Prior to her announcement this week, she released a number of economic reports that would shed light on the economy besieged by rapid inflation as interest rates rise.

People are also reading …

Some early signs suggest that inflation may have cooled from bright red levels. AutoClub AAA said on its website as of Monday that the average price of regular gas per gallon is $ 4.36 per gallon. That’s 16 cents down from a week ago, 55 cents cheaper than late June, when the average price was $ 4.91 per gallon. Crude oil prices have fallen nearly 10% this month alone.

Other than the Federal Reserve Board, Thursday, when the Ministry of Commerce releases its first estimates of economic production in the April-June quarter, will be the hottest report. Some economists predict that it may shrink for the second consecutive quarter. The economy shrank 1.6% in the January-March quarter. Two straight negative measurements are informally considered a recession.

Earnings will be quiet on Monday, but later this week, tech giants such as Apple, Meta, Microsoft and Amazon will all report results. Other big companies reporting this week include Coca-Cola and McDonald’s, where investors can see the impact of inflation on these inflation-conscious consumer companies.

Copyright 2022 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

US markets are mixed while investors wait for Fed meetings | Technology

Source link US markets are mixed while investors wait for Fed meetings | Technology

Back to top button