Wall Street Stumbles on Worries About Rates

Wall Street Stumbles on Worries About Rates
Concerns about rising interest rates are buffeting Wall Street this week. Following firmer-than-expected reports on the US economy, the Dow Jones Industrial Average tumbled more than 700 points, or 2.2%. The S&P 500 also fell, shedding 2.7%, bringing losses suffered by the most influential bourse on Wall Street to 21% for the year. The Nasdaq composite dropped 3.4%.
Good economic data would normally be welcome news for markets that are jittery about a possible recession. In this case, investors are taking the continued health of the economy to mean the Fed, as it has promised, will continue to raise interest rates.
The Fed is acutely worried about a resilient job market that is giving more oxygen to inflation. This week, data was released showing that employers laid off fewer workers last week than expected. Meanwhile, a separate report showed that the overall US economy grew more strongly during the summer than had been forecasted.
What does this mean for me? 
Inflation has been slowing since peaking in the summer, which has boosted hopes on Wall Street that the Fed may back down from its fighting talk on interest rates. However, Fed officials continue to reiterate the message that they will raise rates further in 2023 and don’t foresee a cut to rates before 2024. For this reason, trading has been topsy turvy across Wall Street as mixed pictures of the economy make it harder for investors to get a clear idea of where rates will go. 
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