The Dow drops 300 points before the Fed meets as inflation pressures rise
The Dow drops 300 points before the Fed meets as inflation pressures rise
The Dow Jones Industrial Average fell by 299 points as strong labor data suggested the Federal Reserve may not cut interest rates soon. The Employee Cost Index rose by 1.2%, indicating rising inflation pressures. This comes as the Federal Open Market Committee (FOMC) begins its meeting, influencing investor expectations on future rate cuts.
In corporate news, Tesla plans further layoffs, impacting its Supercharger team and several executives, as part of a broader workforce reduction strategy by CEO Elon Musk. Meanwhile, McDonald's shares recovered slightly after reporting lower-than-expected sales, affected by consumer spending cutbacks and boycotts related to the Israel-Hamas conflict.
Additionally, the cryptocurrency market saw a decline, with Bitcoin dropping below $61,000 and Ether falling to $3,000, influenced by underwhelming performances of new ETFs in Hong Kong.