US Indices fall at opening-Review Budrigantrade
Budrigantrade.com - Investors were uneasy as a result of worries about rising interest rates and falling corporate profits, which led to a fresh correction in U.S. stock markets at the start of the week.
The Dow Jones Industrial Average was down 282 points, or 0.8 percent, at 35,949 points at 9:40 AM ET (1440 GMT), while the S&P 500 was down 1.3 percent and the Nasdaq Composite was down 1.9 percent.
The main reason for the change was a fear of inflation and the Federal Reserve's aggressive policy tightening to stop it. Having read an employment report over the weekend, which showed that higher wages and a rapidly diminishing pool of spare labor were adding to inflationary pressures. Goldman Sachs analysts (NYSE: In response, GS) revised their forecasts to say that they now anticipate the Fed raising rates four times this year and beginning to reduce its enormous bond portfolio as early as July.
Additionally, Lululemon Athletica Inc. (NASDAQ: LUL) was a yogawear manufacturer that showed signs of ongoing supply chain issues reducing profits. LULU) reported disappointing holiday season sales. The stock of Lululemon sank by 4% to its lowest level since June. Nonetheless, it remains firmly in the group of businesses most vulnerable to rising interest rates. Even though it had already fallen by more than 25% from its peak, the stock was still trading at 53 times trailing earnings at the close on Friday.
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