Friends
Concerns about shutdowns in China and supply chain disruptions along with hawkish comments from several Fed officials help set a gloomy landscape for stocks today. Market participants are trying to figure out if interest rates are going higher as Fed Governors continue to indicate or are most market pundits who are predicting a recession in 2023, and a subsequent drop in interest rates, going to be right. Well, actually both can be right as the Fed could continue to move short term interest rates higher via the Fed Funds rate and long-term interest rates could fall inverting the yield curve even more and almost assuring a more serious recession.
Whatever the case, stocks sold off early and often today as by the close the Dow Jones Industrial Average was down 497 points to finish the day at 33,849. The S&P 500 was down 62 points to close at 3,964. The Nasdaq Composite Index was down 176 points to close at 11,049. Gold was down $13 to trade at $1,740 per ounce, while oil was up $.73 to trade at $77.01 per barrel WTI.
It has been fascinating to watch pundits continue to call for the end of interest rate hikes while Fed officials continue to insist that they are not done raising rates. Finally, you get days like today when buyers finally succumb, and sellers see an opportunity to push stocks lower. It should be an interesting week. Stay tuned.
Have a nice evening everyone.
