Dow tumbles after Fed says interest rates could jump twice in 2023

Dow tumbles after Fed says interest rates could jump twice in 2023

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4:15pm: Major indices take a hit Traders reacted harshly after the Fed raised its inflation estimate for 2021 to 3.4%, up a percentage point from March, and the Federal Open Market Committee revealed that interest rates could rise in 2023.  The Dow closed down 266 points, 0.8%, at 34,034 after spending the bulk of the session near the flatline. The Nasdaq fell 33 points, 0.2%, to 14,040, and the S&P 500 lost 23 points, 0.5%, to 4,224. 12:12pm: Investors count down the hours to 2 pm The Dow was down 21 points to 34,279 at midday, while the Nasdaq added 3 points to 14,076, and the S&P 500 shed 2 points to 4,244. "What little activity there has been in markets has dropped to a barely noticeable level ahead of the [US] Fed meeting, which even the legend Paul Tudor Jones has described as the ‘most crucial in [Jerome] Powell’s career,'" IG Chief Market Analyst Chris Beauchamp wrote.  "Markets have been in deep freeze the last few days waiting for tonight’s decision, but those hoping for a misstep from the chairman will probably be disappointed – he knows where the questions will focus and will be determined not to be caught on the hop," Beauchamp wrote. The Fed will make its statement at 2 pm ET followed by a press conference from Powell. 10am: Proactive North America headlines: Victory Square Technologies Inc (CSE:VST) (OTCMKTS:VSQTF) (FRA:6F6) portfolio company Immersive Tech adds a VR veteran to its board Vuzix Corporation (NASDAQ:VUZI) CEO Paul Travers touts the company's impressive product lineup in letter to shareholders Benchmark Metals Inc (CVE:BNCH) (OTCQX:BNCHF) commences its property-wide exploration program for 2021 Renforth Resources Inc (CSE:RFR) (OTCPINK:RFHRF) (FRA:9RR) discovers more high-grade gold at its Parbec deposit in Quebec; provides Surimeau project update Binovi Technologies Corp (CVE:VISN) (OTCQB:BNVIF) says online learning market will surpass $660 billion by 2027 Sanatana Resources Inc (CVE:STA) (OTCMKTS:SADMF) reports promising results from first pass scout drill program on the Gold Rush project in Ontario TruTrace Technologies Inc (CSE:TTT) (OTCQB:TTTSF) appoints Robert Lelovic as its chief financial officer Cloud Nine Web3 Technologies Inc (CSE:CNI) (OTCMKTS:CLGUF) (FRA:1JI0)  brings on blockchain expert Dan Reitzik as special advisor to the board of directors The Parent Company (NEO:GRAM) (OTCQX:GRAMF) reveals The Peakz Company as its second social equity investment Vicinity Motor Corp (CVE:VMC) (OTCQX:BUSXF) (FRA:6LG) to use Danfoss Editron drivetrain systems in its medium duty Vicinity Lightning EV buses Marble Financial Inc (CSE:MRBL) (OTCMKTS:MRBLF) (FRA:2V0) inks licensing deal to provide MyMarble to Nuborrow users going through the mortgage process Snowline Gold Corp (CSE:SGD) (OTCPINK:SNWGF) mobilizes drill rig to Einarson and Rogue projects in preparation for a 3,000 metre program Essex Minerals Inc (CVE:ESX) (FRA:EWX1) poised for drill start at Mt Turner gold project in Queensland, Australia Evergold Corp (CVE:EVER) (OTCMKTS:EVGUF) (FRA:5EG) targets early July start for drilling at its Golden Lion property in British Columbia Nextech AR Solutions Corp (CSE:NTAR) (OTCQB:NEXCF) (NEO:NTAR) (FRA:N29) reveals limited early access to its HoloX telepresence creator platform Mydecine Innovations Group Inc (NEO:MYCO) (OTCMKTS:MYCOF) (FRA:0NFA) kicks off machine learning-based drug discovery program with the University of Alberta First Mining Gold Corp (TSE:FF) (OTCQX:FFMGF) (FRA:FMG) says to hold special AGM on June 30 to vote on distribution of Treasury Metals shares and warrants Fidelity Minerals Corp (CVE:FMN) (FRA:S5GM) (OTCMKTS:SAIDF)  unveils encouraging sampling results from Las Brujas gold property, Peru 9.36am: Wall Street has mixed start The main indices on Wall Street have made a mixed start to Wednesday’s session as traders awaited the latest update from the Federal Reserve. Shortly after the opening bell, the Dow Jones Industrial Average was down 0.14% at 34,249, while the S&P 500 was flat at 4,246 and the Nasdaq climbed 0.19% to 14,098. Investors seem unsure of which way to turn in the run up to the conclusion of the Fed’s meeting, with any commentary from chair Jerome Powell likely to push markets in one direction or another. 7:30am: Wall Street set for cautiously mixed start It's Fed day, and markets are in a bit of a holding pattern until the US central bank comes out with its latest views on inflation at the end of its two-day meeting. With that in mind, Wall Street is set for a rather cautious start. The Dow Jones Industrial Average is expected to open down 0.13%, the S&P 500 is forecast to dip 0.04% while the Nasdaq Composite is indicated 0.07% higher. While economists do not expect Federal Reserve chair Jerome Powell and his cohorts to signal a change in policy today, all eyes will be on any comments suggesting it might start easing its support in the light of growing inflationary pressures. Michael Hewson at CMC Markets said: "The Fed currently believes that the recent increase in inflationary pressures is transitory, and should fall back as the year progresses, and base effects fall away. "There is certainly a lot of evidence to support this, however central bankers seem to be making an awful lot of assumptions which could come back and bite them if they turn out to be wrong, especially when you look at the number of companies who are passing price increases on to consumers. This is hardly transitory if the rebound in prices overshoots the falls from last year and starts to constrict consumer demand. "With these concerns very much front of mind it would not surprise if Fed policymakers start to lay the groundwork for a taper sometime in the autumn. If done properly this need not spook the market, as it would acknowledge that the Fed has a plan in place for its reaction function as the economy improves. For now, it would appear the Fed is on autopilot through the summer, and that’s fine for now with markets appearing to be giving it the benefit of the doubt. It wouldn’t take much for this to change if the data starts to consistently surprise to the upside, in turn helping to push yields back up again." But Sophie Griffiths at Oanda believes any suggestion of tapering could hit market sentiment immediately: "The Fed is not expected to adjust monetary policy today. However, there are growing expectations that Jerome Powell and company could start to gradually introduce the idea of reining in monetary policy. Given that the ultra-loose policy has helped drive stock markets to record highs, signs of this support being tapered back will inevitably result in a sell-off." Four things to watch for on Wednesday: Firms making an appearance in the mid-week earnings diary include insurance firm Lennar Corp (NYSE:LEN), Jessica Alba’s household goods group Honest Company Inc (NASDAQ:HNST) and pharmaceuticals firm Beyondspring Inc (NASDAQ:BYSI) Shares in fantasy sports group DraftKings Inc (NASDAQ:DKNG) may also draw focus as the company continues to reel from a broadside from short seller Hindenburg Crypto trading platform Coinbase Global Inc (NASDAQ:COIN) could provoke interest after the company added three new crypto tokens to its professional service on Tuesday On the macro front, aside from the Fed investors may be interested in US building permit data as well as import and export prices for May

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