U.S. stocks mixed on Fed’s rate hike signals

Published On: February 17, 2022Categories: Stocks & Shares1.3 min read

The Dow Jones Industrial Average dropped more than 57 points or 0.16%, the Nasdaq Composite shed 0.11%, while the S&P 500 pushed out a small gain

U.S. stocks ended the session mixed after Federal Reserve officials noted red-hot inflation and a tight labour market will likely warrant faster-than-expected rate hikes.

The Dow Jones Industrial Average dropped more than 57 points or 0.16%, the Nasdaq Composite shed 0.11%, while the S&P 500 pushed out a small gain. All three of the major averages ended well off the lows of the session after the details from the Fed’s last meeting were released.

Earlier, retail sales climbed 3.8% in January, month over month after unexpectedly dropping 2.5% in December based on the revision. Excluding the automotive component, spending increased 3.3% in January, a rebound from December’s 2.8% drop.

Investors also continued to monitor tensions between Russia and Ukraine after NATO reported that Russia was not easing its military presence around Ukraine.

Oil remained at $93 per barrel, giving a lift to ExxonMobil and Chevron.

In earnings, Airbnb shares rose after the company reported a rebound in business, with most bookings at the travel rental company coming in for four days or longer.

Robolox shares fell after reporting a 25-cent loss missing the 13-cent profit Wall Street was expecting. Revenue of $770 million also fell short of Wall Street estimates.

Shopify tumbled after disclosing revenue growth will slow in 2022 after jumping 57% in 2021 as COVID lockdowns drove business.

Kraft Heinz saw its shares rise after delivering a better-than-expected quarter and said revenues this fiscal year will be as much as $6 billion, higher than Wall Street’s $5.8 billion estimate.

After-the-bell earnings include reports from Dow member Cisco Systems, insurer AIG, chipmaker Nvidia and semiconductor equipment maker Applied Materials.

About the Author: Jonathan Adams

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