Asia Stocks Down After Yellen Reiterates Rate Rise Coming

Asia Stocks Down After Yellen Reiterates Rate Rise Coming photo Asia Stocks Down After Yellen Reiterates Rate Rise Coming

Caterpillar Inc. (CAT) fell 0.9% and was one of the four decliner on the Dow. Bond prices and yields move inversely. The Dow Jones industrial average dropped 251 points, or 1.5 percent, to 16,031. Gold for immediate delivery rose 0.5 percent to $1,135.56 an ounce. Markets fretted all week, until last night when-in a speech at University of Massachusetts Amherst-Fed Chair Yellen reiterated that the Fed remains on track to hike rates this year. She acknowledged that economic “surprises” could lead policy makers to change that plan.

That choice was emblematic of the conflict stock investors faced this week amid mixed messages on the health of the USA economy.

Now traders are pricing in about a 40 percent chance of an increase in December, down from 49 percent as recently as Monday, and a 48 percent probability in January, according to Bloomberg. The Nasdaq composite declined 18 points, or 0.4%, to 4,734. (NASDAQ: MTSN), off 5 percent.

Strong earnings from Nike lifted the Dow yesterday, while weakness in many tech names pushed the Nasdaq lower as a morning rally in U.S. fizzled. For the week, the market’s “fear gauge” added 6%. Growth was boosted by gains in consumer spending and construction.

USA stocks ended the week with a whimper, turning big opening gains in the S&P 500 and Nasdaq Composite into losses by the conclusion of Friday’s session. Biotechs, drugmakers and other medical stocks topped the losers’ list in the stock market today, while apparel and shoe makers, financials and utilities gained. The rout was sparked by a tweet from Democratic presidential hopeful Hillary Clinton suggesting there may be “price gouging” in the market for prescription drugs. “It’s been such a victor , the health-care sector”. The UK’s FTSE 100 Index shed 1.2 percent, while France’s CAC 40 Index and Germany’s DAX Index each slid 1.9 percent. The company’s quarterly profit topped expectations on strong growth in China.

“Deferral of Fed lift-off to later this year or into Q1 leaves markets treading water”, wrote Deutsche Bank analysts in a note to clients on Thursday. That’s soothed shareholders, who have seen shaky overseas economies and currency fluctuations threaten sales. A number of carmakers had fallen sharply on Thursday amid the emissions scandal enveloping Volkswagen. Kellogg, Hormel Foods and Campbell Soup all rose more than 1 percent.

The US equity market has been skittish since last Thursday, with the S&P 500 losing 2.8 percent up to Wednesday’s close.

Leave a Reply