S&P 500 closes as Apple drops and traders watch Powell’s speech

  • Investors look to Powell’s speech for interest rate clues
  • US consumer confidence drops in November
  • S&P 500 -0.16%, Nasdaq -0.59%, Dow Jones +0.01%

Nov 29 (Reuters) – The S&P 500 closed lower on Tuesday, with losses at Apple and Amazon ahead of an upcoming speech by U.S. Federal Reserve Chairman Jerome Powell that could give hints about the scale of future price increases. interest rate.

Investors also focused on recent protests against COVID-19 restrictions in China, including at the world’s largest iPhone factory.

Apple (AAPL.O) stock fell 2.1%, down for a fourth consecutive session.

Powell is scheduled to speak Wednesday at a Brookings Institution event on the outlook for the U.S. economy and labor market. Investors will be looking for clues as to when the Fed will slow the pace of its aggressive interest rate hikes.

“No one is ready to buy until tomorrow with Powell speaking. Everyone is nervous about what he’s going to say,” said Ron Saba, senior portfolio manager at Horizon Investments in Charlotte.

Shares of Amazon (AMZN.O), Nvidia (NVDA.O) and Tesla (TSLA.O) each lost more than 1%.

The benchmark S&P 500 (.SPX) is heading for its second consecutive month of gains in November amid bets that recent inflation readings showing a slight cooling in prices will lead the Fed to reduce the scale of its interest rate hikes.

The Fed has made four consecutive rate hikes of 75 basis points, and it is expected to slow the pace to 50 basis points in December. FEDWATCH

A survey on Tuesday showed US consumer confidence slackened further in November amid lingering concerns about the rising cost of living.

A trader works with his son on a traditional day to bring your kids to work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., November 25, 2022. REUTERS/Brendan McDermid

The recent wave of civil disobedience in mainland China comes as the number of COVID cases hit daily records and large parts of several cities face new lockdowns, further threatening the world’s second-largest economy.

The S&P 500 energy sector index (.SPNY) rose 1.3% as gains in oil prices on expectations of an easing of China’s tough COVID controls were later offset by fears that OPEC+ will keep output unchanged at its next meeting.

The S&P 500 fell 0.16% to end the session at 3,957.60 points.

The Nasdaq fell 0.59% to 10,983.78 points, while the Dow Jones Industrial Average rose 0.01% to 33,852.13 points.

Despite the decline in the S&P 500, rising issues outnumbered falling ones (.AD.SPX) by a ratio of 1.3 to one.

The S&P 500 posted three new highs and two new lows; the Nasdaq recorded 68 new highs and 183 new lows.

U.S.-listed shares of Chinese companies Alibaba Group Holding Ltd, Pinduoduo Inc (PDD.O) and JD.com Inc jumped more than 5% after China widened equity financing channels for property developers .

Shares of Chinese internet company Bilibili Inc soared 22% after posting upbeat quarterly results.

Volume on U.S. exchanges was relatively light, with 9.6 billion shares traded, compared to an average of 11.2 billion shares over the previous 20 sessions.

Reporting by Shreyashi Sanyal and Ankika Biswas in Bengaluru and Noel Randewich in Oakland, California; Editing by Marguerita Choy and Shounak Dasgupta

Our standards: The Thomson Reuters Trust Principles.

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