US stocks were mixed Monday morning after posting consecutive weekly losses for the first time since late September.
S&P 500 Index (^ The Salafist Group for Preaching and Combat(down by 0.1%, while the Dow Jones Industrial Average (^ DJI) turned positive shortly after the open, jumping 100 points, or 0.3%. Nasdaq Technology Heavy Composite (^ ix) fell 0.5%. In the past week, the S&P 500 is down 2.1%, the Dow is down 1.7%, and the Nasdaq is down 2.7%.
Elsewhere in the market, US Treasury yields rose, while the US Dollar Index declined. Oil rallied, with West Texas Intermediate (WTI) futures up nearly 2% to trade above $75 a barrel.
last week, Tesla shares fell 16% — in its worst week since the onset of the COVID pandemic in March 2020 — due to concerns about Musk’s management of Twitter and Tesla stock sales.
Monday’s moves follow a defeat last week That came after the Fed officials Provided a half percentage point increase to the overnight interest rate. Chairman Jerome Powell has also confirmed that hiking will continue into the new year and the policy will remain restricted for as long as there is a need to rein in still-high inflation – even if it means economic consequences.
“Reducing inflation is likely to require a sustained period of below-trend growth and some easing of labor market conditions,” Powell said during a speech on Wednesday. “The historical record warns strongly against a policy of premature easing. We will continue the course, until the job is done.”
The US central bank’s messages about continued and restrictive monetary policy have dimmed hopes for a Santa Claus gathering – A steady rise in the stock market occurs at the end of the year holidays. With its second straight weekly decline on Friday, the S&P 500 is now down nearly 6% year-to-date.
“It was a double punch — it was about the Fed and then some weaker economic data — and that created an image of the Fed being ruthless about inflation, maybe not caring about the economy, and not particularly understanding how it works,” said Christina Huber, chief global market strategist at Invesco told Yahoo Finance Live, “The general concern is that we’re heading into a recession based on what the Fed has already done, and on top of that, the Fed is poised to do more.”
This week’s economic calendar will provide investors with the latest Personal Consumption Expenditure Price Index — or PCE — which is the Fed’s preferred measure of inflation, as well as another reading on gross domestic product, a range of housing data, and the Conference Board’s measure of consumer confidence.
Alexandra Semenova is a correspondent at Yahoo Finance. Follow her on Twitter @employee
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