UNITED STATES NEWS

Stock market today: Wall Street drops again as oil prices and stocks worldwide slide

Jun 23, 2023, 12:10 AM | Updated: 6:38 am

NEW YORK (AP) — Another drop for stocks has Wall Street on track to close out its first losing week in the last six. The S&P 500 was 0.8% lower in early trading Friday, pulling back further from last week when it reached its highest level in more than a year. The Dow was off 278 points, or 0.8%, and the Nasdaq composite fell 1%. Stocks fell even more overseas. Europe’s economy appears to be weaker than expected, according to a preliminary report measuring manufacturing and services. That’s adding to this week’s hesitance in markets following more increasese in interest rates by central banks around the world.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Markets on Wall Street pointed lower early Friday as anxiety carried over from a day earlier when a handful of central banks around the world cranked interest rates higher in their fight against inflation.

Futures for the S&P 500 slipped 0.6% and futures for the Dow Jones Industrial Average lost 0.4%. Barring a turnaround, the benchmark S&P 500 is poised for its first losing week in the past six.

Federal Reserve Chair Jerome Powell this week has reiterated his belief that inflation is still too high and that further increases to rates may be necessary. Powell testified before a Senate committee Thursday, a day after appearing before a House of Representatives committee.

The Fed held interest rates steady at its last meeting after raising rates aggressively throughout 2022 and into 2023 to tame painfully high inflation. Inflation has cooled somewhat since last summer, but the Fed has signaled it may raise rates two more times this year as it tries to push inflation down to its stated goal of 2%.

High interest rates have already slowed manufacturing and other parts of the U.S. economy. They’ve also helped cause three high-profile failures in the U.S. banking system. The banking industry remains under pressure, even after the federal government acted quickly to provide support.

Central banks worldwide have been raising interest rates to make borrowing more costly and slow economic growth to stifle inflation. But the strategy risks going too far in stalling growth and dragging economies into a recession.

The U.S. government says the economy grew at a lackluster 1.3% annual rate from January through March, though a final estimate is coming next week.

That tepid growth has fueled anxiety over a potential recession and put pressure on oil prices.

After giving up $3.02 on Thursday, U.S. benchmark crude oil shed $1.05 to $68.46 per barrel early Friday in electronic trading on the New York Mercantile Exchange.

Brent crude, the international standard, lost 99 cents to $73.36 per barrel.

In Europe on Thursday, the Bank of England Turkey also raised borrowing rates.

In Asia, central banks have begun to keep interest rates steady, or in the case of Vietnam, cut them, as their economies have slowed.

Japan reported its inflation rate was higher than expected, adding to expectations the upward price pressures, which have pushed the dollar’s value against the yen sharply higher. The Bank of Japan has kept its benchmark interest rate at minus 0.1% for a decade as policymakers keep credit cheap to encourage more investment and spending.

The core inflation rate, excluding volatile energy and food prices, was 3.2% in May, above the official 2% target for a 14th straight month, the government reported.

“We think there are signs of inflationary pressure building up on the supply side, but it is certainly not strong enough for the BOJ to bring about immediate tightening,” ING Economics said in a commentary.

The dollar was trading at 143.13 yen, up modestly from 143.10 yen and near its highest level since November. A weaker Japanese yen raises costs for Japanese businesses and consumers given the country’s heavy reliance on imports.

In Asian trading, Tokyo’s Nikkei 225 lost 1.5% to 32,781.54 and the Hang Seng in Hong Kong fell 1.7% to 18,889.97. Shanghai was closed for a holiday.

In Seoul, the Kospi fell 0.9% to 2,570.10, while Australia’s S&P/ASX 200 gave up 1.3% to 7,099.20. Shares also fell in Mumbai and Bangkok.

In Europe at midday, Germany’s DAX lost 1%, Paris, the CAC 40 in Paris slipped 0.4% and Britain’s FTSE 100 shed 0.5%.

The euro was trading at $1.0890, down from $1.0960.

On Thursday, the S&P 500 rose 0.4%, even though the majority of stocks fell. A rebound for technology stocks helped to overshadow losses elsewhere in the market and keep the benchmark index afloat.

Gains for high-growth stocks also drove the Nasdaq composite to a market-leading gain of 1%, while Dow Jones Industrial Average fell less than 0.1%.

—-

Kurtenbach reported from Bangkok; Ott reported from Silver Spring, Maryland.

United States News

Associated Press

3 falcon chicks hatch atop the Verrazzano-Narrows Bridge in New York City

NEW YORK (AP) — Three peregrine falcon chicks have hatched in a nest built at the top of the Verrazzano-Narrows Bridge in New York City, officials said. The Metropolitan Transportation Authority Bridges and Tunnels said Friday that the chicks hatched in a nesting box set up by the agency atop a 693-foot-tall (211-meter-tall) tower on […]

6 hours ago

Associated Press

Baltimore police fatally shoot a man who pulls gun during questioning; detective injured

BALTIMORE (AP) — Police officers in Baltimore fatally shot a man who pulled a gun while they questioned him in a different shooting, authorities said. A detective was shot in the chest, and his protective vest likely saved his life, Police Commissioner Richard Worley told reporters. Police were on the city’s south side investigating a […]

7 hours ago

Associated Press

California teenager arrested after crowd pounded and kicked a deputy’s car

HIGHLAND, Calif. (AP) — A teenager was taken into custody after a crowd of young people swarmed a deputy’s patrol car earlier this month, kicking and punching the vehicle before the deputy could drive away, a California sheriff’s office said this week. The 15-year-old male allegedly opened the driver’s door of the San Bernardino Sheriff’s […]

7 hours ago

Travelers walk through Salt Lake City International Airport Friday, May 24, 2024, in Salt Lake City...

Associated Press

Record broken for most travelers screened at US airports on Friday, according to TSA

A record was broken ahead of the Memorial Day weekend for the number of airline travelers screened at U.S. airports.

9 hours ago

Associated Press

Biden’s message to West Point graduates: You’re being asked to tackle threats ‘like none before’

WEST POINT, N.Y. (AP) — President Joe Biden on Saturday told graduates of the U.S. Military Academy that their class is being called upon to tackle threats across the globe and preserve the country’s ideals at home “like none before.” Biden said the phrase, the class motto, was apt for the sorts of challenges they […]

11 hours ago

Associated Press

Texas breaks temperature records amid triple-digit forecast; Oklahoma remains under tornado threat

OKLAHOMA CITY (AP) — Scattered severe storms continued across parts of Oklahoma on Saturday with the risk of possible tornadoes lasting into the night, as some parts of South Texas broke heat records and people were warned of triple-digit temperatures over the long holiday weekend. Memorial Day is the unofficial start to summer, although the […]

13 hours ago

Sponsored Articles

...

Sanderson Ford

3 new rides for 3 new road trips in Arizona

It's time for the Sanderson Ford Memorial Day sale with the Mighty Fine 69 Anniversary, as Sanderson Ford turned 69 years old in May.

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

...

Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

Stock market today: Wall Street drops again as oil prices and stocks worldwide slide