NEW YORK, Aug 22 — US equities continued to slide early today with all eyes on this week’s annual gathering of central bankers in Jackson Hole, Wyoming where Federal Reserve Chair Jerome Powell is expected to lay out his view on interest rate hikes.
In recent weeks, signs of easing price pressures and a slowing economy, among other factors, have caused financial markets to become optimistic the Fed will dial back or even pause rate increases—and possibly begin to cut next year.
The optimism comes, however, despite officials’ repeat warnings that rates will continue to rise, even though annual inflation slowed in July as oil prices fell.
“Last month, inflation was good, but it was only one month,” said Jack Ablin of Cresset Capital.
“I think the investors are worrying a little bit about the Jackson Hole meetings and that we could hear a more hawkish Fed.”
About 25 minutes into trading, the Dow Jones Industrial Average was down 1.3 per cent at 33,285.62.
The broad-based S&P 500 declined 1.4 per cent to 4,168.38, while the tech-rich Nasdaq Composite Index fell 1.6 per cent to 12,501.06.
Investors edged away from speculative investments, dumping shares in movie theater meme stock AMC, which fell 34 per cent. — AFP