U.S. stocks fall and dollar up on fed hike fears, S&P 500 snaps 4-week-long gains
2022-08-22 12:00uSMART

Friday’s halt in Wall Street’s summer rally came as fed hike fears. The S&P 500 slid 1.29% to close at 4,228.48, while the Dow Jones Industrial Average tumbled 292.30 points, or 0.86%, to 33,706.74. The Nasdaq Composite dropped 2.01% to settle at 12,705.22

 

MACRO

US Markets closed lower on expectations that the Fed would continue raising interest rates in the near term

EU Markets wrapped up lower, with German producer prices witnessing their highest spike on record  

Asia Markets were largely flat, with Japan’s headline inflation rising to 2.6%, up from 2.4% in June

 

SECTORS

Gold fell for a fifth consecutive session on the back of a stronger dollar and prospects for subsequent rate hikes

WTI Crude Oil recorded a 1.5% drop for the week, as a stronger US dollar implies increased costs for buyers in other currencies  

 

COMPANY

Foot Locker jumped 20% having reported a smaller than expected decline in Q2 comparable sales alongside the appointment of a new CEO

Wayfair fell 20% after slashing approximately 5% of its global headcount which it expects to reflect in 3Q

General Motors rose 2.5% following the company’s decision to reinstate its quarterly dividend while raising its share buyback program    

 

EVENTS

Today’s Earnings:

  • Nordson (NDSN)
  • Palo Alto Networks (PANW)
  • Zoom Video Communications (ZM)

 

Economic Calendar (23 Aug 2022)

  • Germany S&P Global Manufacturing PMI Flash (August)
  • US New Home Sales (July)

 

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