US stocks fall as markets worry about interest rates – Markets


New York, United States ●
Tue, Jun 28, 2022

United States, Wall-Street, stocks, interest rates, the Fed, inflation

Wall Street stocks fell on Monday, fading from last week’s positive run as markets weigh on concerns about a slowing economy and rising interest rates.

Economists are growing pessimistic about whether U.S. policymakers can stage a “soft landing” as central banks tighten monetary policy, reversing a long run of borrowing rates at lows due to of soaring inflation.

The yield on the 10-year US Treasury note, an indicator of interest rate expectations, climbed to around 3.20%.

Beth Ann Bovino, chief economist for S&P Global Ratings, said she remains relatively optimistic about the outlook for 2022, but 2023 “is the biggest worry.”

S&P forecast “a low-growth recession in 2023”.

The Dow Jones Industrial Average ended down 0.2% at 31,438.26.

The broad-based S&P 500 fell 0.3% to 3,900.11, while the tech-heavy Nasdaq Composite Index fell 0.7% to 11,523.83.

Orders for expensive U.S.-made manufactured goods were surprisingly strong in May, helped by demand for military automobiles and aircraft, government data showed Monday.

The increase points to solid demand even as US inflation hits a 40-year high, but economists warn that uncertainty caused by the war in Ukraine could dampen business investment plans, which could reduce orders in the coming months.

Economic reports this week include a third reading of US economic growth in the first quarter and a survey of manufacturing companies in June.

Among individual companies, Digital World Acquisition fell 9.6% after it disclosed grand jury subpoenas in its proposed merger with the Trump Media & Technology Group.

Robinhood Markets jumped 14% following a report that cryto exchange FTX is considering a bid for the online brokerage firm.

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