US stocks showed mixed signals on Friday as they approach their worst month since the pandemic began.
The S&P 500 remained unchanged and the NASDAQ Composite was up 0.3% as of 10:26 ET (14:26 GMT), while the Dow Jones Industrial Average was down 85 points or 0.3%.
The Dow may wind up having its worst month since March 2020, and the three indexes are on pace to have their worst first nine months since 1998.
Investors are concerned that the Federal Reserve may overshoot its target for interest rate increases and cause the economy to enter a recession. Despite knowing that its efforts may cause some economic pain, the Fed is nonetheless committed to reducing inflation.
Lael Brainard, vice chair of the Fed, emphasized the necessity of controlling inflation on Friday, stating that restrictive policy will be required for some time. “For these reasons, we are dedicated to not reversing course too soon.”
For the third time in a row, the Fed hiked interest rates earlier this month by 0.75 percent, bringing the benchmark rate to 3% to 3.25%.
According to a number of businesses, including CarMax, rising rates are slowing down the housing market and altering consumer behavior. CarMax claimed that sentiment and inflation were impacting the sale of used cars.
As a result of Nike Inc.’s announcement that markdowns to clear inventory will continue to put pressure on profitability, its stock slumped 11%.
WTI crude oil futures saw a 1.5% decline to $79.97 per barrel, while Brent crude futures saw a 1.7% decline to $85.69 per barrel. Futures for gold increased 0.7% to $1679.
Many investors are anxiously anticipating the upcoming three months because they believe the stock market decline in the United States will continue until there are indications that the Fed is succeeding in its fight against inflation.
However, the last quarter of the year has frequently been favorable for U.S. stocks, raising hopes that the worst of the selloff may have already been priced in.
