Stock Market Slides for Third Consecutive Day in June 2023 Amid Powell’s Warning of More Interest Rate Hikes
On June 21, 2023, U.S. markets declined for the third day in a row as Federal Reserve Chair Jerome Powell signaled additional interest rate increases this year, sparking investor concerns.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading teams to cover pivotal news events with depth and accuracy.
Highlights
- Markets experienced a three-day losing streak on June 21, 2023, following Fed Chair Jerome Powell’s remarks about upcoming interest rate hikes.
- Technology stocks bore the brunt of the sell-off due to sensitivity to rising borrowing costs.
- Generac shares surged amid increased demand for generators prompted by intense heatwaves and power outages in the Southern U.S.
U.S. equities extended their decline for the third day after Federal Reserve Chair Jerome Powell testified before a House committee, emphasizing that the battle against inflation remains ongoing and that more interest rate hikes are expected this year.
Technology stocks, particularly vulnerable to higher interest rates, led the downturn. Intel (INTC) and Advanced Micro Devices (AMD) were among the worst performers in the S&P 500. Shares of AI-focused companies like Nvidia (NVDA) and Qualcomm (QCOM) also dropped sharply. Additionally, Salesforce (CRM), Netflix (NFLX), and all FAAMG stocks saw declines. Tesla (TSLA) shares fell 5% following a Barclays downgrade.
FedEx (FDX) shares declined after quarterly sales fell short of analysts’ expectations. Teleflex (TFX) also saw shares dip following an analyst downgrade.
Generac Holdings (GNRC) shares rose for the second day running, driven by soaring demand for backup generators amid widespread blackouts and extreme temperatures in the Southern U.S. Dollar Tree (DLTR) shares climbed after executives outlined a strategic turnaround plan. Oil futures gained 2%, lifting shares of Exxon Mobil (XOM), APA (APA), ConocoPhillips (COP), and other crude producers, alongside oilfield services companies Baker Hughes (BKR), Halliburton (HAL), and SLB (SLB). Construction equipment providers Deere & Co. (DE) and United Rentals (URI) also saw gains.
Precious metals prices, including gold, declined, while copper prices increased by 0.5%. The 10-year Treasury yield initially rose following Powell’s comments but settled nearly unchanged by the close. The U.S. dollar strengthened against the yen but weakened versus the euro and pound. Cryptocurrency markets saw robust gains, with major digital coins rallying.
Discover engaging topics and analytical content in Markets News as of 26-06-2023. The article titled " Stock Market Slides for Third Consecutive Day in June 2023 Amid Powell’s Warning of More Interest Rate Hikes " provides new insights and practical guidance in the Markets News field. Each topic is meticulously analyzed to deliver actionable information to readers.
The topic " Stock Market Slides for Third Consecutive Day in June 2023 Amid Powell’s Warning of More Interest Rate Hikes " helps you make smarter decisions within the Markets News category. All topics on our website are unique and offer valuable content for our audience.