Published on 25 Sep 2023 on Zacks via Yahoo Finance
All three widely followed indexes closed a losing week last Friday. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite declined 1.9%, 2.9% and 3.6%, respectively. For the S&P 500 and Nasdaq, it was the largest weekly percentage fall since March.
The Fed turned hawkish after its September meeting, and chairman Jerome Powell indicated that he expects at least another hike by year-end. The general suggestion was that the policy required further tightening because the current level of inflation still needs to be brought down to the Fed’s 2% target. Investor optimism took a hit, and trade suffered through the week.
The treasury yield also hit a 16-year high, and whether the central bank could attain a soft landing for the economy is up for debate again. However, some good news came from the automobile sector with a breakthrough in talks between the Big Three automakers and the striking UAW representatives.
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