View of the trading floor of the New York Stock Exchange.
(Photo: dpa)
Frankfurt, New York On Wednesday, Wall Street worried about a rate hike. The trigger was the surprisingly strong retail data announced on Tuesday. The Dow Jones index went 0.6 percent lower to 35,931 points from trading. The technology-heavy Nasdaq fell 0.3 percent to more than 15,921 points. The broad S&P 500 also lost 0.3 percent to just under 4,689 points. Investors bet that the US Federal Reserve (Fed) could raise interest rates earlier than previously thought by the market, as even higher prices have not slowed retail sales.
“The good news for investors is that aggregate demand seems to be taking the rise in inflation so far,” said Bank of America analysts. “The bad news is that the combination of robust demand and a large supply shock makes a strong case for Fed tightening.”
US consumers are buying winter items
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