US stocks opened lower Thursday, while oil and energy stocks rose after the European Central Bank hiked interest rates from zero to 0.75 percentage point to curb inflation – and the Federal Reserve was considering a similar hike.
In early trade, the Dow Jones Industrial Average fell 216.19 points, or 0.68%. The S&P 500 lost 29.79 points, or 0.75%, and the Nasdaq Composite lost 102.92 points, or 0.87%.
The early downturn erased Wednesday’s gains after three weeks of losses.
Some of the stocks that fell were Apple (AAPL), down $0.58, or 0.38%, to $155.42, and Google parent Alphabet (GOOG), down $1, or 0.91% $109.48 fell.
While answering questions Thursday morning at the Cato Institute, Federal Reserve Chair Jerome Powell reiterated that the central bank intends to do whatever it takes to fight inflation. The Fed is expected to hike rates for the fifth time later this month.
“The risk of a recession is increasing and as a result we have moved more defensively in our portfolios,” said Lauren Goodwin, economist and portfolio strategist at New York Life Investments, in a note to clients. “However, high inflation means that traditional ‘risk-avoidance’ strategies such as cash and government bonds can weigh on total returns.”
https://www.ibtimes.com.au/stocks-fall-early-trading-out-concerns-over-inflation-rate-hikes-1838145?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution Stocks fall in early trade on concerns about inflation and rate hikes