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Friday, December 9, 2022
Stocks & Shares

U.s. stocks erase early gains ahead of fed decision

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The Dow Jones Industrial Average was down 75 points or 0.2 per cent, while the S&P 500 was down 0.2 per cent, and the NASDAQ Composite was down 0.4 per cent

U.S. stocks lost their early gains on Tuesday and turned red after stronger than expected data on jobs in September.

At 14:12 GMT, the Dow Jones Industrial Average was down 75 points or 0.2 per cent, while the S&P 500 was down 0.2 per cent, and the NASDAQ Composite was down 0.4 per cent.

Investors are awaiting the Federal Reserve’s decision on Wednesday, with expectations for another 0.75 percentage point interest rate hike but hope for an indication that the Fed will start to ease back on that at its next meeting in December.

Blue-chip stocks had their best month since 1976 in October, fuelled by better than expected earnings reports from big companies and the belief that the Fed was nearing the end of its most aggressive phase in fighting inflation after data showed the economy is cooling.

Tech giants have struggled in recent weeks on a slowdown in sales of PCs and a slowdown in digital advertising.

The Institute for Supply Management reported a dip in manufacturing PMI to 50.2 in October from 50.9 in September, a step closer to tipping into contraction phase. The reading was better than expected. JOLTs job openings were 10.7 million in September, well ahead of the 10 million expected and the 10.3 million in the prior month.

Uber Technologies rose 14 per cent after a strong fourth quarter outlook. Pfizer shares rose 3 per cent after it hiked its full-year sales estimates for its COVID-19 vaccine.

Oil rose, with Crude Oil WTI Futures up 2.6 per cent, to $88.71 a barrel, while Brent Oil Futures crude rose 2.3 per cent to $94.87 a barrel. Gold Futures also rose 0.9 per cent, to $1655.

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