US stocks slide on Friday as investors await details on next Fed hike

Stocks fell on Wall Street on Friday, ending the S&P 500 index four consecutive weeks of victories.

After a mixed bag of corporate earnings, stronger jobs data and a steady retail sales report, investors are already waiting for the Federal Reserve’s annual conference in Jackson Hole, Wyoming next week to find out. when and how much the US central bank might raise its main borrowing rate.

The S&P 500 ended the week down 55 points, or 1.3%, at 4,228, while the Dow Jones Industrial Average fell 0.9%. The Nasdaq fell 2%, with tech stocks posting some of the biggest losses.

More rate hikes to come

The Fed’s July meeting minutes released this week said inflation is still too high and clarified that the central bank would continue to raise interest rates.

The Fed has raised interest rates twice this year in 0.75 percentage point, triples its usual margin. Forecasters are expecting a rise at the September board meeting, but whether that’s another three-quarter point rise or a smaller one can be determined by whether the Fed is more influenced by a historically strong labor market or an economy that has contracted two quarters in a row.

“With activity growth rebounding in July against a backdrop of slowing inflation, we still expect the Fed to raise rates by 50 basis points next month,” wrote Andrew Hunter, an economist at Capital Economics. , in a research note Wednesday.


Inflation slowed in July as gasoline prices fell

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“Fed tightening expectations are not changing much (although they are increasing slightly),” analyst Adam Crisafulli of Vital Knowledge said in a report.

Meme Bed Bath & Beyond stock sank 40% after high profile activist investor Ryan Cohen confirmed he had been bailed out of the stock. General Motors rose after reinstating its dividend and Foot Locker jumped 20% after appointing former Ulta Beauty CEO Mary Dillon as CEO on Friday, replacing Richard Johnson, and reporting earnings above estimates. Wall Street.

Bitcoin fell 9.2%, to $21,245.09 each, dragging the rest of the falling crypto market with that.

In energy markets, benchmark U.S. crude fell $1.40 to $89.10 a barrel in electronic trading on the New York Mercantile Exchange. The contract jumped from $2.39 to $90.50 on Thursday. Brent crude, the price basis for international trade, fell $1.62 to $94.97 a barrel in London. It jumped from $2.94 the previous day to $96.59.

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