Rate worries weigh on US stocks as Apple falls again
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Traders work on the floor of the New York Stock Exchange, in New York City.
PHOTO: AFP
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NEW YORK - Wall Street stocks finished mostly lower on Thursday on worries about higher interest rate policy as Apple shares tumbled again on worries over China.
Apple fell 2.9 per cent, its second straight decline, following reports that China has barred the use of iPhones in government offices.
Analysts also cited residual worries the Federal Reserve and other central banks will continue to lift interest rates to counter inflation.
“The fear factor is back in the market,” said Mr Peter Cardillo, of Spartan Capital. “It’s about the future path of rates.”
The Dow Jones Industrial Average finished up 0.2 per cent at 34,500.73.
The broad-based S&P 500 declined 0.3 per cent to 4,451.14, while the tech-rich Nasdaq Composite Index dropped 0.9 per cent to 13,748.83.
Major indices have been under pressure all week, with analysts pointing to the rise in crude prices earlier this week as blunting central bank policies to address inflation.
Recent solid US economic data has mitigated worries about a recession in the near-term, but has added to concerns the Fed may lift interest rates further after numerous increases over the last year and a half.
Mr John Williams, head of the Federal Reserve Bank of New York, said while inflation has been “moving in the right direction,” policymakers have not ruled out additional hikes.
“Do we need to maybe raise rates again to make sure that we’re keeping that steady progress in terms of shrinking imbalances in the labor market, and bring inflation back down?“ Mr Williams said.
“We’re going to need to continue to be data dependent.” AFP
