Wall Street opens December lower

Economies.com
1 month ago

US stock indices fell on Thursday after a batch of data and a speech by Fed Chair Jerome Powell.

 

Fed Chair Jerome Powell said the pace of rate hikes will be slowed down starting from the December meeting as the bank rebalances its risks.

 

However he cautioned that monetary policies will remain tight for the time being until inflation is brought back to normality.

 

Following the remarks, markets now put an 80% chance of a 0.5% rate hike by the Fed in December, and a 20% only for a 0.75% rate hike.

 

Recent US data showed personal income rose 0.8% in October, matching analysts' expectations, beating estimates of 0.6%. 

 

US unemployment claims fell to 225 thousand in the week ending November 26 past estimates of 234 thousand, and down from 241 thousand in the previous reading.

 

US ISM manufacturing PMI tumbled to 49 in November from 50.2 in the previous reading, moving past estimates of 49.7.

 

Dow Jones fell 1%, or 335 points to 34,254 as of 15:18 GMT, while S&P 500 slid 0.5%, or 21 points to 4,058, as NASDAQ gave up 0.6%, or 70 points to 11,399. 

American Markets News