Wednesday, the US stock market posted a steep loss for the second straight day after the minutes of the Federal Reserve''s last meeting showed central bankers hesitant to cut interest rates further due to mounting inflation concerns. Further the sharp rise in the crude prices also added to the sentiments.
The FOMC released the minutes from its April 30 meeting said that the Fed expects 2008 real GDP growth of between 0.3% and 1.2%, which is down about 1% from their previous forecast. Several FOMC members said that it was unlikely that it would be appropriate to ease monetary policy in the near term, even if the economy sees a contraction given the current inflation environment.
The shares of Amex Airline Index plunged 12% to its lowest level since its 1994 inception after the company announced a plan to cut its 2008 domestic capacity by 11% to 12%.
On a positive note, Time Warner and Time Warner Cable managed to end on a positive note on the back of the news that the two companies have agreed to completely separate. The deal will involve a special dividend of $10.9 billion, with $9.25 billion going to Time Warner.
The Dow Jones Industrial Average (DJIA) dropped by 227.49 points to close at 12,601.19. The S&P 500 (SPX) index decreased by 22.69 points to close at 1,390.71 and the NASDAQ Composite (RIXF) fell 43.99 points to close at 2,448.27.
Among the Dow’s 30 components, all of its components ended in the negative territory.
A total of 0.9bn shares were traded on the NASDAQ, with declining stocks outpaced the advancing stocks by 2 to 1. On NYSE around 1.4bn shares traded for the day, with declining stocks outpaced the advancing stocks by 2 to 1.
Crude oil futures for the month of June delivery closed higher by $4.19 at $133.17 per barrel on New York Mercantile Exchange. During the intraday trading the crude prices have touched a new record high of $133.50 per barrel after government data showed a substantial and unexpected decrease in crude inventories, marking their first decline in five weeks. Further the weakening if dollar as against euro also added to its gains. As per the weekly inventory report announced by the Energy Department, crude supplies fell by 5.4 million barrels to 320.4 million for the week ended 16 May as against the market expectation of a rise of 900,000 barrels for the latest week.
The gold prices for the month of June delivery rose by $8.40 to settle at $928.60 an ounce on the New York Mercantile Exchange. The gold prices touched an intraday high of $933 an ounce. The gold prices increased mainly due to the sharp rally in the crude oil prices and also the weakening of dollar as against its rival currencies.
The FOMC released the minutes from its April 30 meeting said that the Fed expects 2008 real GDP growth of between 0.3% and 1.2%, which is down about 1% from their previous forecast. Several FOMC members said that it was unlikely that it would be appropriate to ease monetary policy in the near term, even if the economy sees a contraction given the current inflation environment.
The shares of Amex Airline Index plunged 12% to its lowest level since its 1994 inception after the company announced a plan to cut its 2008 domestic capacity by 11% to 12%.
On a positive note, Time Warner and Time Warner Cable managed to end on a positive note on the back of the news that the two companies have agreed to completely separate. The deal will involve a special dividend of $10.9 billion, with $9.25 billion going to Time Warner.
The Dow Jones Industrial Average (DJIA) dropped by 227.49 points to close at 12,601.19. The S&P 500 (SPX) index decreased by 22.69 points to close at 1,390.71 and the NASDAQ Composite (RIXF) fell 43.99 points to close at 2,448.27.
Among the Dow’s 30 components, all of its components ended in the negative territory.
A total of 0.9bn shares were traded on the NASDAQ, with declining stocks outpaced the advancing stocks by 2 to 1. On NYSE around 1.4bn shares traded for the day, with declining stocks outpaced the advancing stocks by 2 to 1.
Crude oil futures for the month of June delivery closed higher by $4.19 at $133.17 per barrel on New York Mercantile Exchange. During the intraday trading the crude prices have touched a new record high of $133.50 per barrel after government data showed a substantial and unexpected decrease in crude inventories, marking their first decline in five weeks. Further the weakening if dollar as against euro also added to its gains. As per the weekly inventory report announced by the Energy Department, crude supplies fell by 5.4 million barrels to 320.4 million for the week ended 16 May as against the market expectation of a rise of 900,000 barrels for the latest week.
The gold prices for the month of June delivery rose by $8.40 to settle at $928.60 an ounce on the New York Mercantile Exchange. The gold prices touched an intraday high of $933 an ounce. The gold prices increased mainly due to the sharp rally in the crude oil prices and also the weakening of dollar as against its rival currencies.
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