January 31, 2023

Brighton Journal

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The Dow Jones is down more than 300 points as Wall Street heads for consecutive weekly declines

The Dow Jones is down more than 300 points as Wall Street heads for consecutive weekly declines

Stocks fell on Friday as investors continued to sell into the end of the year amid fears of a recession next year due to the Federal Reserve’s relentless interest rate hikes.

The Dow Jones Industrial Average lost 375 points, or 1.13%. The S&P 500 fell 1.17%, while the heavy Nasdaq Composite fell 0.75%. Trading can be particularly volatile on Friday with a large number of options set to expire.

There are $2.6 trillion worth of index options set to expire, the highest amount “relative to stock market volume in nearly two years,” according to Goldman Sachs.

The sell-off was widespread, with only 18 S&P 500 names trading in positive territory. The real estate and energy sectors were the most lagging, falling by 3% and nearly 2%, respectively.

Meanwhile, shares meta rose after 5% JPMorgan has upgraded shares of the social media company To increase the weight of neutral.

shares Adobe It excelled after the design software company reported fourth-quarter earnings and fiscal guidance that beat expectations. Shares rose 6%.

With these recent declines, the indices are preparing for a second consecutive week of losses. The S&P 500 is down more than 1% for the week and about 5% for the month of December as hopes of a year-end rally fade.

Stocks have been dropping this week in wake Raising the Fed interest rate by 50 basis points On Wednesday – the highest rate in 15 years. The central bank said it will continue to raise interest rates through 2023 to 5.1%, a larger figure than previously expected.

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“After being so hopeful on the Fed pivot, stock traders are having indigestion [Wednesday’s] John Lynch, chief investment officer at Comerica Wealth Management, said the FOMC statement, which reiterated Jerome Powell’s “higher for longer” theme.