US stocks attempt to rebound after interest rate-driven sell-off

us-stocks-attempt-to-rebound-after-interest-rate-driven-sell-off

Matthew Fox

Lucas Jackson/Reuters US stocks attempted to rebound on Wednesday after suffering a sharp sell-off over the past month.The S&P 500 is down 6% this month as interest rates have surged to their highest level since 2007.A rise in the US dollar and oil prices has also served as a headwind for stock prices this month. Loading Something is loading.

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US stocks attempted to rebound on Wednesday after suffering a sharp sell-off this week and throughout the month of September.

Much of the S&P 500’s 6% decline this month has been driven by a sharp increase in interest rates, as the Federal Reserve continues to signal that it could tighten monetary policy further and keep rates higher for longer to get inflation back to its long-term target of 2%.

Minneapolis Fed President Neel Kashkari told CNBC on Wednesday that he expects another interest rate hike and that the Fed would lose its credibility if it settles with 3% inflation rather than getting inflation down to its 2% target.

A decline in the 10-Year US Treasury yield on Wednesday relieved some pressure for stock prices, but an ongoing rise in the US dollar and oil prices continues to create headwind for equity investors to navigate. 

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday: 

S&P 500: 4,290.36, up 0.35%Dow Jones Industrial Average: 33,651.54, up 0.1% (+39.85 points)Nasdaq Composite: 13,112.83, up 0.38% Here’s what else is going on today: 

Elon Musk said the UAW’s strike demands, including a 40% salary increase, will drive America’s big three automakers into bankruptcy.Americans are starting to feel worse about the US economy, as the consumer confidence index dives to a four-month low. The Nasdaq Composite has dropped 9% since hitting its peak for the year on July 19, as investors worry about sticky inflation and higher interest rates.Oil prices could be headed to as high as $150 a barrel unless the US boosts its exploration efforts, a top shale executive warned.In commodities, bonds, and crypto: 

West Texas Intermediate crude oil rose 2.47% to $92.62 a barrel. Brent crude, the international benchmark, jumped 2.00% to $95.84 a barrel. Gold fell 0.55% to $1,909.20 per ounce. The yield on the 10-year Treasury bond fell three basis points to 4.51%. Bitcoin jumped 2.02% to $26,743.  Read next

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