U.S. stocks closed higher after a choppy session as investors struggled to shake off rate-path worries amid weak corporate earnings and weakening consumer spending.
Rate setting committee anticipated ongoing rate increases as the timing of peak rates gets pushed back despite multiple rate hikes over the last twelve months.
Worries of rising interest rates and falling corporate earnings and consumer spending hovered market sentiment as investors reacted to the latest batch of earnings ahead of the Fed minutes release.
Popular indexes posted the worst day of 2023 after interest rate worries were compounded by weak outlook from leading retailers. Investors turned cautious after tensions between US and China notched up and Russia's invasion of Ukraine neared its anniversary.
Benchmark indexes closed lower amid growing worries of aggressive rate hikes compounded by the weakening corporate earnings outlook but resilient consumer spending. European markets extended weekly gains on improving earnings outlook but Asian markets lacked direction.
Market selloff intensified after wholesale inflation jumped and comments from a Federal Reserve official raised the prospect of an aggressive rate hike at the next meeting. Housing starts and building permits declined by double digits but completions rose in January .
Stocks advanced on Wall Street ahead of the CPI report on Tuesday. Crude oil and natural gas prices drifted lower and the European Commission raised its 2023 estimate of the Euro Area growth.
World markets traded sideways amid slowing corporate earnings and the worries of rising interest rates kept investors on edge. With earnings season approaching the midpoint, downward revisions are taking the center stage.
Investors are grappling with a new reality of falling earnings and growth after companies report headwinds from macroeconomic conditions, restrained consumer and stronger U.S. dollar.
Market indexes shook off rate anxieties and tech stocks led today's advance after Chairman Powell said inflation is slowing but has a long way to go. U.S. Trade deficit soared after the international goods deficit expanded and service surplus shrank.
