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US Market ends lower on Fed rate concerns

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Capital Market
Last Updated : Mar 01 2023 | 11:31 AM IST
The US stock market finished lacklustre session slightly in negative territory on Tuesday, 28 February 2023, amid ongoing concerns about the outlook for interest rates.

At the close of trade, the Dow Jones Industrial Average index fell 232.39 points, or 0.71%, to 32,656.70. The S&P500 index was down 12.09 points, or 0.3%, to 3,970.15. The tech-heavy Nasdaq Composite Index decreased 11.44 points, or 0.1%, to 11,455.54. For the month, the S&P 500 fell 2.61%, the Dow slid 4.19% and the Nasdaq shed 1.11%

Total 8 of 11 sectors ended lower along with the S&P500 Index. Utilities was worst performing sector, falling 1.72%, followed by energy (down 1.44%), and consumer staples (down 0.75%) sectors.

ECONOMIC NEWS: A report released by the Conference Board on Tuesday showed U.S. consumer confidence unexpectedly decreased for the second consecutive month in February. The Conference Board said its consumer confidence index slid to 102.9 in February from a downwardly revised 106.0 in January. The unexpected decline by the headline index came as the expectations index slumped to 69.7 in February from a downwardly revised 76.0 in January. The Conference Board noted the expectations index has fallen well below 80, which often signals a recession within the next year. Meanwhile, the report said the present situation index rose to 152.8 in February from 151.1 in January, reflecting a more favorable view of the availability of jobs.

Chicago Business Barometer Index Edges Lower In February-- Chicago-area business activity unexpectedly contracted at a slightly faster rate in the month of February, according to a report released by MNI Indicators on Tuesday. MNI Indicators said its Chicago business barometer edged down to 43.6 in February from 44.3 in January, with a reading below 50 indicating a contraction. The unexpected dip by the Chicago business barometer partly reflected a steep drop by the production index, which plunged by 10.2 points, more than reversing January's rebound. The employment index also slid a further 4.7 points into contractive territory, slumping to its lowest level since June 2020. MNI Indicators said the prices paid also sank 7.2 points, returning to late 2022 levels after having briefly surged in January. Meanwhile, the new orders index increased 3.0 points, reaching its highest level since last August but continuing to indicate a contraction. The inventories subcomponent was little changed after having declined into year-end, with supplier issues again cited as grounds for higher stock levels.

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First Published: Mar 01 2023 | 9:15 AM IST

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