The Dow is now 20.5 percent below its all-time high set on Jan. stock indexes to fall into what’s known as a bear market Monday, falling 1.1 percent to 29,260.81. The Dow became the last of the major U.S. economy is already slowing, raising worries that rate hikes might cause a recession. The Fed also released a forecast suggesting its benchmark rate could be 4.4 percent by the year’s end, a full point higher than envisioned in June. It was near zero at the start of the year. It now sits at a range of 3 percent to 3.25 percent. Seeking to make borrowing more expensive and crimp spending, the Fed raised its benchmark rate, which affects many consumer and business loans, again last week. On Friday, the government will release another report on personal income and spending that will help provide more details on where and how inflation is hurting consumer spending. The government will release its weekly report on unemployment benefits on Thursday, along with an updated report on second-quarter gross domestic product. The latest consumer confidence report, for September, from the business group The Conference Board will be released on Tuesday. Several economic reports are on tap for this week that will give more details on consumer spending, the jobs market and the broader health of the U.S. That will give them a better sense of how companies are dealing with persistent inflation. The dollar bought 144.49 yen, down from 144.65 yen, and the euro rose to 96.29 cents from 96.10 cents.Ĭompanies are nearing the close of the third quarter and investors are awaiting the next round of earnings reports. The pound was at $1.0765, up from $1.0686 late Monday. But the dollar’s surge against other currencies is putting pressure on the BOJ and other central banks, especially in developing economies facing growing costs for repaying foreign loans. Last week, the Bank of Japan intervened in the market as the yen slipped past 145, gaining a brief reprieve. The Japanese yen edged toward 145 to the dollar early Tuesday. The British pound dropped to an all-time low against the dollar on Monday and investors continued to dump British government bonds in displeasure over a sweeping tax cut plan announced in London last week. But volatility in currency markets has further roiled markets in recent days. Investors have been particularly focusing on the Federal Reserve and its aggressive interest rate hikes. Stocks have been sagging under concerns over stubbornly hot inflation and the risk that central banks could trigger recessions as they try to cool high prices for everything from food to clothing. In Seoul, the Kospi lost 0.4 percent to 2,212.57. The Shanghai Composite index was unchanged at 3,051.25, while Hong Kong’s Hang Seng index shed 1 percent to 17,674.94. Tokyo’s Nikkei 225 index picked up 0.8 percent to 26,651.60 and the S&P/ASX 200 added 0.3 percent to 3,051.25. The benchmark S&P 500 is down more than 7 percent in September. The week started out with a bout of selling amid an extended slump for many markets. futures rose and oil prices also were higher. Tokyo, Sydney and Shanghai advanced while Hong Kong and Seoul declined. Stocks were mixed in Asia on Tuesday after closing broadly lower on Wall Street, where the Dow Jones Industrial Average fell into what’s known as a bear market.
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