Stocks Fall For A Third Day As Investors Digest Fed Tightening Plan

Tiger Newspress2022-04-07

Stocks fell again on Thursday, following back-to-back losing sessions, as traders weighed the Federal Reserve’s plans to tighten monetary policy.

Futures on the Dow Jones Industrial Average fell 110 points or 0.3%, S&P 500 futures dipped 0.2%, and Nasdaq 100 futures slid 0.3%.

Shares of HP Inc surged 15% in the premarket after Warren Buffett’s Berkshire Hathaway disclosed a stake in the tech hardware maker.

The Fed on Wednesday released the minutes from its March meeting, which showed that officials planned to reduce their trillions in bond holdings with a consensus amount around $95 billion. Meanwhile, policymakers indicated that one or more 50 basis-point interest rate hikes could be warranted to battle surging inflation.

“The minutes from the latest FOMC meeting portray a higher level of urgency than previous communication as the Fed has circled on a commitment to run the balance sheet down faster than market participants may have expected,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.

Officials “generally agreed” that a maximum of $60 billion in Treasurys and $35 billion in mortgage-backed securities would be allowed to roll off, phased in over three months and likely starting in May.

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Comments

  • LimLS
    2022-04-08
    LimLS
    Fed is behind the curve in term of dealing with the inflation. Their wrong call on the "transitory" inflation is made worse with the Ukraine war which further increase the oil prices and other raw material. That explained the urgency showed by the Fed in the last few months. Aggressive measures by Fed in term of magnitude of hikes and pace of QT should be expected for 2022. Do not expect or hope that Fed will suddenly turn dovish again. So plan your 2022 strategy with this in mind and we should get through fine.
  • SCLIEW
    2022-04-08
    SCLIEW
    666
  • Looyusooi
    2022-04-08
    Looyusooi
    Ok
  • Wtt
    2022-04-08
    Wtt
    Ops
  • WaiSiong81
    2022-04-08
    WaiSiong81
    👍
  • waiwaiho
    2022-04-08
    waiwaiho
    Pls like, thanks 
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