We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stock markets closed lower on Wednesday following the release of an inflation gauge. Wall Street remained highly volatile throughout the trading session. Market participants are waiting for a key inflation metric to be released on Thursday. All the three major stock indexes ended in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was down 0.1% to close at 29,210.85. Notably, 18 components of the 30-stock index ended in negative territory while 11 in green and one remained unchanged.
The tech-heavy Nasdaq Composite finished at 10,417.10, sliding 0.1% due to weak performance of large-cap technology stocks. The tech-laden index has recorded a six-day losing streak.
The S&P 500 dropped 0.3% to end at 3,577.03, posting a six-day losing run. In the intra-day trading, the broad-market index fell to a 2-year low. Eight out of 11 broad sectors of the benchmark index closed in negative territory while three in positive zone. The Utilities Select Sector SPDR (XLU) and the Real Estate Select Sector SPDR (XLRE) fell 3.3% and 1.3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 0.2% to 33.57. A total of 10.01 billion shares were traded on Wednesday, lower than the last 20-session average of 11.68 billion. Decliners outnumbered advancers on the NYSE by a 1.64-to-1 ratio. On Nasdaq, a 1.15-to-1 ratio favored declining issues.
Fed’s September FOMC Minutes
Fed officials have unanimously said that the monetary tightening, especially in the form of higher interest rate will continue until the central bank achieved its target to bring down inflation to near to 2%. This indicates that the Fed will once again raise the benchmark interest rate by a 75 basis points in its November FOMC meeting.
The FOMC minutes said, “Participants judged that the Committee needed to move to, and then maintain, a more restrictive policy stance in order to meet the Committee’s legislative mandate to promote maximum employment and price stability.”
IMF Cuts Global Growth Rate
The International Monetary Fund (IMF) has reduced its global economic growth rate for 2023 to 2.7% from 2.9% estimated in July. However, the agency maintained its 2022 global growth forecast at 3.2%. The IMF predicted that a large part of the world will feel like a recession in 2023.
The agency cited three major reasons for this tepid outlook, namely, mounting inflationary pressure across the globe due to the complete devastation of the global supply-chain system, lingering geopolitical conflict between Russia and Ukraine and China’s economic slowdown.
The IMF anticipates that global inflation rate will peak in late 2022 at 8.8% compared with 4.7% in 2021 and will stay elevated for a longer-than-expected period. Global inflation is estimated to come down to 6.5% in 2023 and to 4.1% by 2024.
Economic Data
The Department of Commerce reported that producer price index (PPI) rose 0.4% month over month in September. The consensus estimate was 0.2%. September marked the first increase in three months. Year over year, PPI increased 8.5% in September compared with 8.7% in August.
Core PPI (excluding the volatile food, energy and trade services) rose 0.4% month over month in September. The consensus estimate was 0.3%. The metric for August was 0.2%. Year over year, PPI increased 8.5% in September compared with 8.7%, remained flat with August. Both PPI and core PPI stayed at 40-year highs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Oct 13, 2022
U.S. stock markets closed lower on Wednesday following the release of an inflation gauge. Wall Street remained highly volatile throughout the trading session. Market participants are waiting for a key inflation metric to be released on Thursday. All the three major stock indexes ended in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was down 0.1% to close at 29,210.85. Notably, 18 components of the 30-stock index ended in negative territory while 11 in green and one remained unchanged.
The tech-heavy Nasdaq Composite finished at 10,417.10, sliding 0.1% due to weak performance of large-cap technology stocks. The tech-laden index has recorded a six-day losing streak.
The major loser of the Nasdaq Composite was Exelon Corp. (EXC - Free Report) . Shares of the company tumbled 4%. Exelon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 dropped 0.3% to end at 3,577.03, posting a six-day losing run. In the intra-day trading, the broad-market index fell to a 2-year low. Eight out of 11 broad sectors of the benchmark index closed in negative territory while three in positive zone. The Utilities Select Sector SPDR (XLU) and the Real Estate Select Sector SPDR (XLRE) fell 3.3% and 1.3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 0.2% to 33.57. A total of 10.01 billion shares were traded on Wednesday, lower than the last 20-session average of 11.68 billion. Decliners outnumbered advancers on the NYSE by a 1.64-to-1 ratio. On Nasdaq, a 1.15-to-1 ratio favored declining issues.
Fed’s September FOMC Minutes
Fed officials have unanimously said that the monetary tightening, especially in the form of higher interest rate will continue until the central bank achieved its target to bring down inflation to near to 2%. This indicates that the Fed will once again raise the benchmark interest rate by a 75 basis points in its November FOMC meeting.
The FOMC minutes said, “Participants judged that the Committee needed to move to, and then maintain, a more restrictive policy stance in order to meet the Committee’s legislative mandate to promote maximum employment and price stability.”
IMF Cuts Global Growth Rate
The International Monetary Fund (IMF) has reduced its global economic growth rate for 2023 to 2.7% from 2.9% estimated in July. However, the agency maintained its 2022 global growth forecast at 3.2%. The IMF predicted that a large part of the world will feel like a recession in 2023.
The agency cited three major reasons for this tepid outlook, namely, mounting inflationary pressure across the globe due to the complete devastation of the global supply-chain system, lingering geopolitical conflict between Russia and Ukraine and China’s economic slowdown.
The IMF anticipates that global inflation rate will peak in late 2022 at 8.8% compared with 4.7% in 2021 and will stay elevated for a longer-than-expected period. Global inflation is estimated to come down to 6.5% in 2023 and to 4.1% by 2024.
Economic Data
The Department of Commerce reported that producer price index (PPI) rose 0.4% month over month in September. The consensus estimate was 0.2%. September marked the first increase in three months. Year over year, PPI increased 8.5% in September compared with 8.7% in August.
Core PPI (excluding the volatile food, energy and trade services) rose 0.4% month over month in September. The consensus estimate was 0.3%. The metric for August was 0.2%. Year over year, PPI increased 8.5% in September compared with 8.7%, remained flat with August. Both PPI and core PPI stayed at 40-year highs.