Posted on 09/20/2022 11:34:16 AM PDT by Signalman
Stocks tumbled on Tuesday as the sell-off on Wall Street mounted and investors braced for another large rate hike due out Wednesday from the Federal Reserve.
The Dow Jones Industrial Average fell 450 points, or 1.45%. The S&P 500 shed 1.4% and the Nasdaq Composite slid 1.2%.
The Federal Open Markets Committee began its two-day policy meeting on Tuesday, where central bankers are expected to announce a 0.75 percentage point rate hike on Wednesday. Stocks have tumbled in recent weeks as comments from Fed Chair Jerome Powell and an unexpectedly hot August consumer price index report caused traders to prepare for even higher rates until inflation cools.
Rates marched higher as equities fell, with the yield on the 2-year Treasury note notching a fresh high dating back to late 2007. The yield on the 10-year Treasury reached 3.593% — levels not seen since 2011.
The move higher in the 10-year is likely contributing to the turmoil in equity markets on Tuesday, said Cresset Capital’s Jack Ablin.
“Investors have pretty well digested the 75 basis point hike tomorrow but perhaps there’s some concern that the rhetoric at the press conference could be still extremely hawkish,” he added.
Investors will keep an eye on the central bank’s projections coming out of its meeting in an attempt to gauge how much further interest rates may rise and its implications for the economy.
Meanwhile, Ford shares slumped after announcing that supply chain issues would cost an extra $1 billion in the third quarter.
Housing market data released Tuesday showed an unexpected jump in starts for August, although building permits saw the biggest decline since April 2020.
Tuesday’s move followed a choppy trading session that saw stocks rise in the afternoon and snap a two-day losing streak.
Another party? /s
Boeing still positive..for the moment
GREATEST ECONOMY EVER!!
Doesn’t help my retirement... but stupid should hurt.
Should not affect your retirement if you don’t sell
Expected result of excessive money printing, which created stock bubble & housing bubble, and 40 year record inflation.
Like every bubble in history this one is just getting pricked now. Much more pain lies ahead. No on can party for ever on credit cards.
Haha what good is being retired and not being able to USE what you saved & invested. This bubble is in beginning stages of getting pricked. 401-k could remain under water for 2, 3 or even 4 years.
Well, you miss the point.
A prudent retired investor should have on hand adequate cash to carry through the down market
Xacly. Missed it by that much.
Prudent investor continues to invest through the down cycle. Dollar cost averaging is your friend.
My Magic 8 Ball says that the Fed will do or say something that leads to a flurry of articles saying that a soft landing has been achieved. All for votes in November, of course. Could happen this month, more likely next month.
Market partially recovers, Ol’ Joe crows.
Then, if Dems hold we doggy paddle. A strong R win will bolster the market.
But that’s just a magic 8 ball talking.
“Should not affect your retirement if you don’t sell”
I sell 4.5% a year.
Not selling, adjusting. Selling one stock that won’t like higher interest rates and buying stocks that do. Only an idiot sits on such a situation without taking action.
I wonder if the FOMC really care. Personally, I think the Fed should have raised interest rates a long time ago and to much higher levels. Get over the pain quickly, otherwise we are going to have years of inflation pain.
THIS IS NO LONGER A “CORRUPT” GOVERNMENT
THE DEMOCRATS (AND RINOs) HAVE MOVED IT ON TO FULL BLOWN CRIMINAL!
VOTE DEMOCRAT!!!
This one needs TO GO VIRAL!
https://rumble.com/v1kun0v-marjorie-taylor-greene-how-democrats-and-rinos-write-and-pass-legislation.html
Fed might even bust out a .50 because of the ‘softness’ out there with housing, Russia upcoming, etc.
Too late to sell now. I’ll just hold onto what I have until 2027.
The early 1980s recession was a severe economic recession that affected much of the world between approximately the start of 1980 and early 1983. It is widely considered to have been the most severe recession since World War II. A key event leading to the recession was the 1979 energy crisis, mostly caused by the Iranian Revolution which caused a disruption to the global oil supply, which saw oil prices rising sharply in 1979 and early 1980. The sharp rise in oil prices pushed the already high rates of inflation in several major advanced countries to new double-digit highs, with countries such as the United States, Canada, West Germany, Italy, the United Kingdom and Japan tightening their monetary policies by increasing interest rates in order to control the inflation.
I remember getting a 13% mortgage back in 83. Luckily the company I worked for gave us a relocation subsidy.
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