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S&P 500 drops with Fed policy announcement on tap

A trader works at the New York Stock Exchange (NYSE) in New York City, US, June 7, 2022. REUTERS/Brendan McDermid/File Photo

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  • FedEx Jumps After Raising Its Quarterly Dividend By More Than 50%
  • Oracle soars as sales, earnings estimates higher in the cloud boom
  • Continental Resources jumps on founder’s buyout proposal
  • Dow Jones down 0.5%, Standard & Poor’s 500 down 0.38% and Nasdaq 0.18%

NEW YORK (Reuters) – The S&P 500 ended lower on Tuesday as the index was unable to rebound from a sharp sell-off in the previous session with a key policy statement from the Federal Reserve deck that will reveal how robust the central bank’s policy path will be.

Analysts had largely expected the Fed to rise by 50 basis points at the conclusion of its meeting on Wednesday.

However, finds that a Lifting 75 basis points was on the table It was growing after higher-than-expected CPI data on Friday for the month of May. In addition, a report from the Wall Street Journal on Monday and forecasts from several banks, including JPMorgan and Goldman Sachs, point to a 75 basis point rise, bolstering this belief. Read more

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Traders are currently pricing in more than a 90% chance of a 75 basis point increase, up from 3.9% a week ago, according to CME. FedWatch Tool.

Tuesday’s data showed that the Producer Price Index, while slightly below expectations on an annualized basis for May, remained elevated as gasoline prices rose. Read more

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“Ultimately, even though we’re seeing more red pressure and more downside pressure here, overall we think today is a really wait-and-see day,” said Greg Pasock, CEO of AXS Investments in Port Chester, New York.

“Today’s PPI numbers beg any questions about how high prices and inflation will be – the big question will be how aggressive the Fed will be this week – not even expecting much, but how far are they going to take the bull by the horns this week and really trying to make some moves that It can ease recession fears.”

Dow Jones Industrial Average (.DJI) And fell 151.91 points, or 0.5 percent, to 30,364.83 Standard & Poor’s 500 (.SPX) It lost 14.15 points, or 0.38%, to 3735.48 points, and the Nasdaq Composite (nineteenth) It added 19.12 points, or 0.18%, to 10,828.35 points.

The benchmark S&P 500 index suffered its fifth straight daily decline, posting its longest losing streak since early January. Monday’s declines sent the index down more than 20% from its recent record high, confirming that the bear market began on January 3, according to a commonly used definition.

Bear Markets S&P 500

Among the individual stocks, the pool supplies distributor Pool Corp (pond) It fell 5.27% after Jefferies lowered his target price for the stock to $400 from $485.

FedEx Corp. (FDX.N) It rose 14.41% after increasing its quarterly dividend by more than 50%, while Oracle Corp. (ORCL.N) It gained 10.41% after announcing upbeat quarterly results on demand for its cloud products. Read more

Continental Resources Inc. (CLR.N) It jumped 15.07% after the shale producer received an all-cash buyout offer from founder Harold Hamm, valuing the company at $25.41 billion. Read more

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Volume on US exchanges was 12.49 billion shares, compared to an average of 12.01 billion shares for the full session over the last 20 trading days.

Low issues outnumbered advanced issues on the New York Stock Exchange by 1.96 to 1; On the Nasdaq, the ratio was 1.36 to 1 in favor of declining stocks.

The S&P 500 recorded two new highs in 52 weeks and 77 new lows; The Nasdaq recorded 11 new highs and 641 new lows.

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(Reporting by Chuck Mikolajchak) Editing by Aurora Ellis

Our criteria: Thomson Reuters Trust Principles.

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