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Stock market falls awaiting Fed decision on interest rates – Strong job numbers for October – Amazon dips into negative territory, other winners and losers – U.S. Treasury adds fixed rate on I-bonds
The stock market fell on Wednesday ahead of the coming Federal Reserve decision on interest rates as job data showed a strong labor market, Investor’s Business Daily reported.
At 10 AM ET, volume was significantly lower on the NYSE and Nasdaq compared with the same time a day earlier. The S&P 500, the Dow Jones industrial average, and the NASDAQ composite had all fallen roughly 0.5%, with the small-cap Russell 2000 down 1.2%. The yield on the 10-year Treasury note was essentially unchanged at 4.04%.
The Federal Reserve’s decision on interest rates will be announced at 2 PM ET on Wednesday, with most financial markets expecting another 75-basis-point increase in the fed funds rate.
The jobs report for October showed that private sector employers added 239,000 jobs for the month, beating the Dow Jones estimate of 195,000, and up slightly from the previous month, ADP reported. Annual pay rose 7.7 percent year-over-year, slightly down from the September pace. Most of the job gains were in the leisure and hospitality industry, which added 210,000 positions while wages rose 11.2% for the sector, CNBC reported.
Amazon shares reversed an early gain of as much as 1.0% just after the opening bell, then fell into negative territory once again by 0.8%, putting the company in danger of a sixth-straight loss. Amazon is on track for its lowest close in two and a half years. Amid a five-day losing streak through Tuesday, Amazon stock has plunged 19.7%, the company’s biggest decline in 14 years, MarketWatch reported.
Winners: DuPont (DD) surged 7% in heavy trading. Advanced Micro Devices (AMD) climbed more than 4% in heavy volume.
Losers: Airbnb (ABNB) fell nearly 5%. Estee Lauder (EL) dropped nearly 6% following a weak outlook and its lowest price since July 2020.
Following record-breaking sales of I-bonds in October, the US Treasury is offering another deal that should appeal to savers and investors over the next six months. Starting on November 2, the treasury will offer an inflation-adjusted annualized rate of 6.48%. While down roughly 3% from the previous 9.62%, a new fixed rate of 0.4% (up from zero) will stay with the bond as long as you hold it – up to 30 years. However, the inflation adjustment resets every 6 months in November and May. You can buy up to $10,000 per individual each calendar year through TreasuryDirect.gov, plus an extra $5,000 in paper bonds if you designate them as a tax refund, MarketWatch reported.
