Wall Street pushes stocks down, dollar up on Fed hike fears

Aug 19 (Reuters) – U.S. shares fell and the greenback rose on Friday at the same time as Treasury yields gained, with merchants weighing extra rate of interest hikes from the Federal Reserve to fight inflation.

With larger charges looming, high-growth and expertise shares corresponding to Amazon.com Inc (AMZN.O) and Alphabet Inc (GOOGL.O) fell greater than 2%. Banks declined and had been on observe to finish the week decrease, probably snapping their six-week profitable streak. And an earnings miss by heavy tools maker Deere & Co. (DE.N) added to the risk-off temper. learn extra

The Dow Jones Industrial Common (.DJI) fell 0.71%, to 33,758.75; the S&P 500 (.SPX) misplaced 1.21%, to 4,231.87; and the Nasdaq Composite (.IXIC) dropped 2%, to 12,702.45.

European shares fell on Friday and posted a weekly loss because the highest-ever soar in German producer costs in July added to gloom over the financial outlook. The pan-European STOXX 600 (.STOXX) ended 0.8% decrease. learn extra

The MSCI world fairness index (.MIWD00000PUS), which tracks shares in 47 nations, was down 1.25%.

“When market individuals begin to return from their holidays and look again … they’ll discover central banks nonetheless removed from having achieved their targets of reining in inflation,” ING charges strategists mentioned in a word to purchasers.

“Meaning a continued tussle between central financial institution tightening expectations and recession fears.”

The Federal Reserve must maintain elevating borrowing prices to convey excessive inflation below management, a string of U.S. central financial institution officers mentioned on Thursday, at the same time as they debated how briskly and the way excessive to carry them. learn extra

The U.S. greenback benefited from the Fed’s hawkish feedback and investor warning, hitting a one-month excessive. The greenback index was up round 0.5% at $108.05 and the euro was down 0.4% at $1.004 .

U.S. Treasury yields rose on Friday, mimicking European bonds’ personal sell-off on inflationary fears.

The ten-year U.S. Treasury yield climbed to close a one-month excessive at 2.9794% .

Subsequent week, buyers shall be paying shut consideration to minutes from the European Central Financial institution’s July assembly, in addition to feedback by Fed Chair Jerome Powell when he addresses the annual international central banking convention in Jackson Gap, Wyoming, on Aug. 26. learn extra

“Incoming information, on internet, suggests the U.S. economic system retains pretty wholesome momentum,” Michael Gapen, a Financial institution of America economist, wrote in a shopper word. He cited enhancing motorized vehicle meeting and retail gross sales information, however famous declining housing numbers.

“Incoming information was not uniformly robust … and we word that stronger momentum will finally be met with extra coverage fee firming,” Gapen added.

OIL UP, GOLD AND CRYPTO DOWN

Oil costs rose, albeit on uneven buying and selling, as buyers anticipated a extra subdued Fed fee hike path that helped to ease fears about an financial slowdown that may weaken crude demand. learn extra

U.S. crude was up 0.41% to $90.86 per barrel, whereas Brent was at $96.56, nearly flat on the day.

Cryptocurrencies fell sharply, with sudden promoting dragging bitcoin to a three-week low. It was final at $21,425, down greater than 8.5% on the day. learn extra

Gold was headed for its first weekly drop in a month after hitting a three-week low. Spot gold fell for a fifth straight session, down about 0.5% at $1,748 per ounce, in what could possibly be its longest dropping streak since November 2021.

Reporting by Lawrence Delevingne in Boston and Elizabeth Howcroft in London; Modifying by Chris Reese, Nick Macfie and Jonathan Oatis

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