Tariffs rise cause fuel sales pressure
The prospect of another aggressive rate hike kept pressure on Wall Street stocks ahead of tonight’s decision by the US Federal Reserve.
The Dow Jones Industrial Average lost 1% last night and is at its lowest level in two months, a performance matched by the S&P 500 and the tech-focused Nasdaq.
The declines reflected fears of a hard landing for the US economy if the Fed funds rate rises by at least 0.75% later in the day.
The FTSE 100 index ended 0.6% lower last night and the FTSE 250 fell 1.4%, with a pause in selling pressure expected today as investors stay on the sidelines for the decision and subsequent comments from the Federal Reserve President Jerome Powell.
Michael Hewson, chief market analyst at CMC Markets, said: “There are voices calling for 100 basis points. However, this could come as a knee jerk and indicate that the Fed is panicking and sending a completely wrong message to the markets. can send.
“The Fed needs to show that it is in control of events and raise interest rates by 75 basis points, but also indicate that further substantial rate hikes will follow until there is clear evidence that inflation is beginning to decline at a sustainable pace.”