Fed chief's tough stance against high inflation prompted a sharp selloff on Wall Street and in Europe. Indexes sank as investors recalibrated rate outlook after Powell hinted taming inflation may take longer and need tougher measures.
European markets extended weekly losses after comments from the U.S. Fed Chairman Powell heightened rate jitters. U.K. regulator lifted price cap on energy bills, reflecting sharp jump in market prices.
OpenText agreed to acquire Micro Focus for $6 billion. Gap withdrew its annual outlook and struggles with inventory surge and falling sales. Ulta Salon revised annual outlook slightly higher. Farfetch's operating loss in the quarter surged.
Fed Chairman Powell reiterated the central bank's commitment in combating inflation and highlighted that slower economic growth, higher rates and softer labor market conditions will inflict pain on households.
This week's earnings highlight diverging consumer trends. Demand for high-priced goods and services are still booming but at a slower pace and customers at the low-end are struggling to meet ends in the face of high energy and food prices.
U.S. economy in the second quarter contracted at a smaller rate but a measure of inflation rose faster than previously estimated. Energy prices edged lower but traded near recent highs.
Stocks on Wall Street and in Europe closed higher for the second day in a row. Federal Reserve stepped up high-inflation rhetoric. Crude oil and natural gas prices advanced despite the demand worries from China.
Toll Brothers lowered its annual home delivery guidance but lifted the average home sale price outlook. Nordstrom said it plans to aggressively manage its rising inventories. Advance Auto Parts said higher fuel cost is impacting its do-it-yourself business.
Stocks on Wall Street rebound after sliding for three days in a row. The fresh batch of quarterly results from retailers highlighted the shifting demand from consumers and elevated inflation.
Global markets are turning lower as investors navigate through slowing economic activities, hawkish central bankers committed to curbing demand, and 4-decade high inflation rooted in supply disruptions.
Dick's Sporting Goods struggles with shifting consumer behavior and persistent supply chain issues. Zoom Video revenue growth continues to decelerate. Medtronic sales fall on supply chain disruptions.
Stocks lacked direction after a broad selloff on Monday and natural gas prices soared to the levels last seen in 2008. New home sales declined in July on rising prices and mortgage rates and longer construction time.
Rate path worries resurfaced and the market selloff anchored in tech stocks spread wide and deep barring the energy sector. Natural gas prices inched near $10 a unit and the volatile oil prices erased most of the 5% loss at close.
Stocks closed down amid inflation and rate worries and tech stocks led the losers. For the week, the S&P 500 declined 1.2% and the Nasdaq Composite index dropped 2.6%. The latest economic data in the euro zone and the U.K. indicated more pain ahead in the coming months.
