Home / Business and Economy / Wall Street Braces for Fed Hike: Stocks Dip on Rate Fears
Wall Street Braces for Fed Hike: Stocks Dip on Rate Fears
15 Sep
Summary
- S&P 500 projections revised by bearish analyst Savita Subramanian.
- Dow Jones, S&P 500, and Nasdaq closed lower ahead of Fed decision.
- Concerns over AI development and oil prices impact market sentiment.
US markets concluded Monday's trading session with losses across major indices, just ahead of the Federal Reserve's anticipated interest rate decision. The probability of a 25 basis point hike by the Fed stood at a high 93%.
The Dow Jones saw a decline of 150 points, while the S&P 500 and Nasdaq also ended the day in negative territory, recovering some of their earlier steeper drops. This volatility occurred amidst concerns raised by AI leaders about the rapid pace of technological development.
Analyst outlooks for the S&P 500 remain divided. Bank of America's Savita Subramanian, a notable bearish voice, adjusted her S&P 500 projections, still indicating potential downside. Conversely, Tallbracken Capital Advisers' CEO Michael Purves raised his target to 8,500, the highest on Wall Street.
Adding to market unease were rising crude oil prices, with key pipeline disruptions causing uncertainty, and brief spikes in 10-year bond yields crossing the 5% mark. Discussions around AI regulations and potential market pullbacks due to interest rate risks continue.
