Wall Sreett dips after Fed rate hike, tech slumps again

Randall Padilla
June 16, 2017

In corporate news, shares in electric auto maker Tesla were higher following news that its Model X SUV has been given a five-star safety rating and after Ron Baron, the founder of Baron Capital, told CNBC the stock could jump by more than 50% by next year.

USA retail sales dropped 0.3% in May, the biggest decline in 16 months. The hike will push interest rates above 1 percent for the first time since the immediate aftermath of the collapse of Lehman Brothers in 2008.

The data also pressured the dollar index, which fell to its lowest since November 9.

"With the weak data, you start to wonder why the Fed is so bent on raising rate".

One day removed from the quick market correction-and after a two-day technology industry sell-off-the Dow Jones Industrial Average once again reached an all-time high. "It seems they should be doing the opposite", said Robert Pavlik, chief market strategist at Boston Private Wealth.

The Federal Reserve not only announced that it would raise short-term rates, but it also highlighted a plan to begin to reduce its $4.5 trillion asset portfolio. The S&P 500 opened 15 points, or 0.6%, lower at 2,423. The tech-heavy Nasdaq fell 0.41%, to 6,194.89.

Exxon and Chevron were the top drags on the S&P and the Dow.

Options traders are eyeing a bigger-than-usual earnings move for Kroger stock tomorrow.

The Dow Jones Transport Average index, seen by some as a barometer of economic activity, ended down 0.7 per cent.

Facebook, Mircosoft and Alphabet, which had been hit hard by a selloff in the tech sector earlier this week, rose for the second straight day.

Shares of H&R Block rose 11.2 percent to $30.01 after the tax preparation service provider's fourth-quarter revenue and profit beat analysts' expectations.

Advancing issues outnumbered decliners on the NYSE by 1,356 to 1,247.

Other reports by AllAboutTopnews

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