Friends
Comments from Minneapolis Fed President Neel Kashkari and JP Morgan Chase CEO Jamie Dimon both indicating that the Fed may need to raise interest rates quite a bit higher if inflation persists added fuel to the fire already burning down stocks at the moment. We’ve talked about how difficult on a seasonal basis this time of year is and add to that a very large amount of uncertainty around interest rates and the economy and you see the kind of markets we have seen over the past several weeks. Continued inflation and a slowing economy are not a good combination. We dealt with that in the 70’s (for us older folks remember stagflation?). That narrative is beginning to work its way into the market psyche.
As for today, by the close the Dow Jones Industrial Average was down 388 points to finish the day at 33,618. The S&P 500 was down 63 points to close at 4,273. The Nasdaq Composite Index was down 207 points to close at 13,063. Gold was down $18 to trade at $1,918 per ounce, while oil was up $.86 to trade at $90.54 per barrel WTI.
As rates continue to edge higher, stocks continue to tumble lower. The bears hold the high ground for the moment. Can they keep the pressure on the bulls into the end of the quarter on Friday? Stay tuned.
Have a nice evening everyone.
