US stocks fall for third straight day
Published Jun 22, 2023 01:08 am
NEW YORK, United States- Wall Street stocks fell for a third straight session Wednesday as markets digest gains from earlier in 2023 and take in hawkish Federal Reserve commentary.
US Fed Chair Jerome Powell told a congressional panel that he expects additional interest rate hikes this year, noting that inflation still remains too high.
"We see potential vulnerability in the form of near-term profit taking, triggered by still-hawkish Fed speak," said CFRA Research's Sam Stovall.
He added that "weakness may continue into July" as the Fed hikes rates one last time before pausing until a first cut in the first quarter of 2024.
The Dow Jones Industrial Average shed 0.3 percent to 33,951.52.
The broad-based S&P 500 declined 0.5 percent to 4,365.69, while the tech-rich Nasdaq Composite Index dropped 1.2 percent to 13,502.20.
Among individual companies, shares of FedEx slid 2.5 percent as it reported a 10 percent drop in revenues in the latest quarter. The results were dented by "continued demand weakness and cost inflation," the transportation company said.
Dollar Tree shares jumped 4.6 percent as it forecast earnings per share of $10 or more in fiscal 2026 and confirmed its outlook for the second quarter and this fiscal year.
Chip companies traded lower, with Intel sinking 6.0 percent, Nvidia down 1.7 percent and Advanced Micro Devices losing 5.7 percent.
US Fed Chair Jerome Powell told a congressional panel that he expects additional interest rate hikes this year, noting that inflation still remains too high.
"We see potential vulnerability in the form of near-term profit taking, triggered by still-hawkish Fed speak," said CFRA Research's Sam Stovall.
He added that "weakness may continue into July" as the Fed hikes rates one last time before pausing until a first cut in the first quarter of 2024.
The Dow Jones Industrial Average shed 0.3 percent to 33,951.52.
The broad-based S&P 500 declined 0.5 percent to 4,365.69, while the tech-rich Nasdaq Composite Index dropped 1.2 percent to 13,502.20.
Among individual companies, shares of FedEx slid 2.5 percent as it reported a 10 percent drop in revenues in the latest quarter. The results were dented by "continued demand weakness and cost inflation," the transportation company said.
Dollar Tree shares jumped 4.6 percent as it forecast earnings per share of $10 or more in fiscal 2026 and confirmed its outlook for the second quarter and this fiscal year.
Chip companies traded lower, with Intel sinking 6.0 percent, Nvidia down 1.7 percent and Advanced Micro Devices losing 5.7 percent.