Benchmark indexes closed higher and bond yields rose as investors await inflation and durable goods data on Friday. Natural gas prices across the Atlantic turned volatile on falling demand and rising inventories.
Bond yields spiked around the world after the Bank of Japan after six years initiated the ending of the loose monetary policy. Investors are also bracing for downward revision of earnings in the upcoming year.
Investors sold stocks on the growing fears of earnings revision and economic slowdown worries. European markets staged a tentative rebound and Asian markets fell after the trade deficit in Japan soared and Covid cases spiked in China.
Major averages traded lower and energy prices rose on the first day of a busy week of economic data release including inflation, home sales and personal income and spending.
Weakening economic data and continual hawkish aggressive stance from central banks put investors on the backfoot. With fading hopes for soft landing, investors recalibrate earnings expectations.
European markets extended loss for the second week in a row following central banks hiking rates and lowering growth expectations. Natural prices plunged 10% on a milder weather forecast.
Weaker-than-expected retail sales in November dented market sentiment and raised the prospect of Fed's inflation-fight dipping the economy into a recession.
The Federal Reserve laid the groundwork for future rate hikes in 2023 and lowered growth estimate and added it may be two more years before prices stabilize.
Stocks on Wall Street extend gains ahead of the rate decision. Energy prices rebounded on the hopes of tighter demand supply conditions as winter conditions deteriorate in the northern hemisphere.
With all eyes set on the Federal Reserve's rate actions tomorrow, investors are cautiously optimistic of a moderate rate hike. A judge in the Bahamas denied bail to the former chief executive of FTX.
