Dow Jones drops another 163 points as Wall Street shows signs of exhaustion

view original post

NEW YORK, New York – U.S. stocks finished flat to lower on Thursday as investors started to show signs of exhaustion. The June CPI of 9.1 percent in the U.S. kept buyers at bay on fears the Federal Reserve will be bolder in hiking rates.

“The Fed probably needs to temper people’s expectations in terms of what they can do,” Eddie Cheng, head of international multi-asset investment at Allspring Global Investments told Reuters news agency Thursday.

“In the past hiking cycle, we have observed that inflation kept rising during the hiking cycle. … It takes time for the monetary policy to affect inflation.”

The Nasdaq Composite inched up 3.60 points or 0.02 percent to close Thursday at 13,251.19.

The Dow Jones industrials declined 142.62 points or 0.46 percent to 30,630.17.

The Standard and Poor’s 500 fell 11.40 points or 0.30 percent to 3,790.38.

The U.S. dollar held firm. The euro continued to flirt with parity, finishing the New York session Thursday at 1.0014. The British pound slipped further to 1.1825. The Japanese yen was weak at 138.90. The Swiss franc softened to 0.9835.

The Canadian dollar dived to 1.3104. The Australian dollar eased to 0.6746. The New Zealand dollar slid to 0.6121.

Overseas, the FTSE 100 in London shed 1.63 percent. The German Dax was down 1.86 percent. The Paris-based CAC 40 lost 1.41 percent.

The Australian All Ordinaries rallied on the unemployment number, adding 40.80 points or 0.60 percent to 6,848.60.

In New Zealand, the S&P/NZX 50 jumped 77.67 points or 0.70 percent to 11,187.97.

China’s Shanghai Composite edged down 2.55 points or 0.08 percent to 3,281.74.

In South Korea, the Kospi Composite lost 6.29 points or 0.27 percent to 2,322.32.

Japan’s Nikkei 225 surged 164.62 points or 0.62 percent to 26,643.37.

The Hang Seng in Hong Kong dropped 46.72 points or 0.22 percent to close at 20,751.21.