Stocks lost ground on Thursday as investors digest minutes from the Fed’s March policy meeting.
Tech stocks appeared set to extend losses after the Nasdaq Composite gave up 2.2% on Wednesday.
Fed policy makers said they will move ‘expeditiously’ in raising interest rates.
US stocks were mostly lower Thursday, positioning to extend losses a day after minutes from the Federal Reserve’ s most recent meeting showed policymakers were set to move quickly in raising interest rates to cool inflation.
The Nasdaq Composite gained slightly after losing 2.2% on Wednesday, as tech stocks again bear the brunt of investors anticipating aggressive monetary policy tightening by the Fed. Policymakers agreed on the need to move “expeditiously” in raising interest rates to restore price stability, with inflation sitting at a 40-year high of 7.9%. The Fed also indicated it will start reducing its balance sheet in May by $95 billion each month.
Here’s where US indexes stood shortly after the 9:30 a.m. open on Thursday: S&P 500 : 4,478.23, down 0.07% Dow Jones Industrial Average : 34,353.97, down 0.41% (142.54 points)
Nasdaq Composite : 13,920.88, up 0.22% Wedbush is recommending investors make big moves into tech as the sector is now oversold on fears of interest rate hikes. The firm’s top picks include Apple, Microsoft, and cybersecurity names like ZScaler and Paolo Alto Networks. In commodities, JPMorgan says the sector broadly has room for as much as 40% more upside given investors are under-allocated in the space.
Oil prices rose. West Texas Intermediate crude gained 1.3% to $97.52 per barrel. Brent crude, the international benchmark, rose 1.1% to $102.20. Gold picked up 0.5% to $1,932.70 per ounce. The 10-year yield rose 4 basis points to 2.64%. Bitcoin rose 1.5% to $43,801.96.
