On November 3, the three major US stock indexes fell collectively. As of press time, the Dow fell 0.35%, the Nasdaq fell 1.05%, and the S&P 500 fell 0.76%. Oil and gas stocks are broadly up, with Caron Oil Up more than 6%, Apache Oil, and Marathon Oil rose more than 5%.
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Three Major US Stocks Fell
Qualcomm Stock Fell 6%
In terms of individual stocks, Qualcomm It fell more than 6%, and its Q4 performance fell short of market expectations
Market risk appetite was dented as Federal Reserve Chairman Jerome Powell said interest rates would be higher than previously expected.
Federal Reserve Raised Its Target
The Federal Reserve on Wednesday raised its target for the federal funds rate by 75 basis points, which was completely surprising to investors. Investors have been focused on whether the Fed will reduce the magnitude of rate hikes after four consecutive hikes of 75 basis points
Fed Added New Languages
At the end of the meeting on interest rates, the Fed has yet the stage for this. The Fed added new language in its post-meeting statement, emphasizing that the cumulative: Tightening effects of monetary policy, the lag in the effects of monetary policy on economic activity and inflation, and economic and financial developments will be considered.”
But Powell said that while the rate hikes may be less steep, the Fed has now assessed that rates ultimately need to be at levels higher than those assessed after the September meeting.
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UBS Analyst
UBS analysts pointed out that the answer given by the Fed indicates that the market will continue to be in a state of high volatility, and the performance of the stock market in the next few months may not be very good.
Investors Worrying About Policy
Investors worry that sharply tightening central bank policy will have a negative impact on the economy, with European Central Bank President Christine Lagarde warning on Thursday that raising interest rates could lead to a ‘moderate recession but that was still not enough to stem a surge in prices
BoE Raised Interest Rates
The Bank of England raised interest rates by 75 basis points to 100% on Thursday, in line with market expectations and the largest rate hike in 33 years. The Bank of England has raised interest rates eight times in a row since last December the highest level since November 2008.
However, the tone of BoE policymakers was more dovish as they hoped to temper harken expectations for further sharp monetary tightening.