(ThePatriotWire)- Wall Street stocks continued to decline, extending the market’s weekly losing streak to four. On Tuesday, the S&P 500 dropped 0.4%. The Nasdaq composite fell even further as technology companies reported some of the most significant losses.
Also declining was the Dow Jones Industrial Average. Investors are concerned about inflation and the Federal Reserve’s intention to combat it with high-interest rates as markets recover from a three-week losing streak.
Tuesday saw the start of trading at the New York Stock Exchange after the virtual opening bell-ringing by Ukrainian President Volodymyr Zelenskyy. He made a case for a plan to draw substantial foreign investment to his nation as it fights off Russian forces.
Markets have been declining recently, giving up a lot of the gains earned in July and the first few days of August, as inflation continues to soar and the Federal Reserve remains committed to rising interest rates to contain persistently high prices. The main worry is that the Fed would raise rates excessively and potentially trigger a recession by slamming the brakes on an already faltering economy.
Wall Street has been keenly observing economic data for signs that inflation may be slowing down in the hopes that this will justify the Fed’s scaling down its rate hike program. The Fed has already increased interest rates four times this year, and CME Group predicts that it will raise short-term rates by an additional 0.75 percentage points during its meeting later this month.
According to Mark Hackett, head of investment research at Nationwide, “there is now a fair consensus opinion that the Fed will be higher for longer and err on the side of inflation reduction over employment and growth.”
Rising bond yields The yield on the 10-year Treasury, which affects mortgage and other loan interest rates, increased to 3.33% late on Thursday from 3.19%. The two-year Treasury yield increased from 3.39% to 3.50%, generally following expectations for Fed action.
The majority of European and Asian markets increased. After China Monday pledged to speed up more accessible lending and other initiatives to support the economy, which slowed to 2.5% over a year earlier in the first half of 2022, less than half the official annual objective, the Shanghai Composite Index increased by 1.4%.