Share

US stocks fall ahead of Fed decision

New York - Wall Street stocks retreated on Tuesday ahead of an expected Federal Reserve interest rate increase on Wednesday and the likelihood of additional rate hikes later in the year.

Investors fixated on the Fed meeting as new data showed higher US wholesale inflation in February, raising anxiety Fed chief Janet Yellen could hint at more rate hikes this year. The Fed already was anticipating three increases this year.

"It's a foregone conclusion the Fed will raise rates" Wednesday, said Bill Lynch, director of investment at Hinsdale Associates.

"The question mark is what she says afterwards at the news conference as to how aggressive they're going to be the rest of the year in raising rates."

The Fed will release its latest economic forecasts on Wednesday as well, including the outlook for the benchmark federal funds rate.

The Dow Jones Industrial Average dropped 0.2% to close the session at 20 837.37.

The broad-based S&P 500 shed 0.3% to end at 2 365.45, while the tech-rich Nasdaq Composite Index lost 0.3% to 5 856.17.

Petroleum producers Marathon Oil and Chevron lost 3.3% and 1.8%, respectively, as oil prices continued to retreat on worries about excess supply.

Gainers included Wal-Mart Stores and Nike, each up 1.1%, and Tesla Motors, up 4.8%.

Airline shares were battered for a second day in a row as a major snowstorm in the US Northeast led to the cancellation of thousands of flights.

United Continental lost 4.7% and Delta Air Lines 2.3%.

Valeant Pharmaceuticals International plunged 10.3% as activist fund Pershing Square Capital Management exited its position in the drug maker following major losses.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.90
+0.2%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders