Wall Street drops as consumer data stokes inflation worry

Record ID: 1693156

  • Title: Wall Street drops as consumer data stokes inflation worry
  • Date: 14th October 2022
  • Summary: PALM DESERT, CALIFORNIA, UNITED STATES (OCTOBER 14, 2022) (REUTERS) (SOUNDBITE) (English) BLANKE SCHEIN WEALTH MANAGEMENT, CHIEF INVESTMENT OFFICER, ROBERT SCHEIN, SAYING: "So, in today's movement, we're seeing the typical action from a bear market. You know, you want to pay attention to your Friday closes, you want to pay attention to if the equity markets accelerate to the downside into the close, that's confirming that there's more downside ahead and extreme volatility ahead in the next few days and weeks as well.” WHITE FLASH (SOUNDBITE) (English) BLANKE SCHEIN WEALTH MANAGEMENT, CHIEF INVESTMENT OFFICER, ROBERT SCHEIN, SAYING: "I think the one thing that I'm concerned about, which is what the Federal Reserve's policy in the United States is doing on the global markets.” WHITE FLASH (SOUNDBITE) (English) BLANKE SCHEIN WEALTH MANAGEMENT, CHIEF INVESTMENT OFFICER, ROBERT SCHEIN, SAYING: “They're (the Fed) going to stay higher (rates) for longer. In fact, today's economic data shows just that and reaffirms rate hikes between now and the year-end for the Federal Reserve. So, they're going to continue on that path. The overall, overarching concern is, yes, well, they're trying to focus on the United States very specifically by raising interest rates, getting that terminal rate. And I don't even think they even know ultimately where it's going to end up. We can't just think U.S.-centric. Globally, if we think about it, what the U.S. dollar is doing as a result of raising, rising, or raising interest rates here in the United States is a wrecking ball around the world.”
  • Embargoed: 28th October 2022 21:06
  • Keywords: Dow Nasdaq s&P 500
  • Location: NEW YORK, NEW YORK + PALM DESERT, CALIFORNIA, UNITED STATES
  • City: NEW YORK, NEW YORK + PALM DESERT, CALIFORNIA, UNITED STATES
  • Country: US
  • Topics: Economic Events,Equities Markets,United States
  • Reuters ID: LVA002240414102022RP1
  • Aspect Ratio: 16:9
  • Story Text: U.S. stocks dropped on Friday (October 14) as worsening inflation expectations kept intact worries that the Federal Reserve's aggressive rate hike path could trigger a recession, while investors digested the early stages of earnings season.
    In the last session of a volatile week, equities opened higher, then reversed course after data from the University of Michigan showed consumer sentiment improved in October but inflation expectations worsened as gasoline prices moved higher. Retail sales data also indicated resilience among consumers.
    On Thursday, a reading on consumer prices (CPI) showed inflation remained stubbornly high.
    Fed officials have been largely in sync when commenting on the need to raise rates and St. Louis Fed President James Bullard said in a Reuters interview the recent CPI data warrants a continued "frontloading" through larger three-quarter-percentage point steps, although that does not necessarily mean rates need to be raised above the central bank's most recent projections.
    The S&P 500 lost 86.84 points, or 2.37%, to end at 3,583.07 points, while the Nasdaq Composite lost 327.764 points, or 3.08%, to 10,321.388.
    The Dow Jones Industrial Average fell 403.89 points, or 1.34%, to 29,634.83.
    (Production: Zachary Goelman, Kyoko Gasha)
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