New York (US), January 28: U.S. stocks closed lower on Thursday as concerns over monetary tightening continue to weigh on market sentiment.
The Dow Jones Industrial Average dipped 7.31 points, or 0.02 percent, to 34,160.78. The S&P 500 was down 23.42 points, or 0.54 percent, to 4,326.51. The Nasdaq Composite Index tanked 189.34 points, or 1.40 percent, to 13,352.78.
Five of the 11 primary S&P 500 sectors ended in red, with consumer discrepancy and real estate down 2.27 percent and 1.75 percent, respectively, leading the laggards. Energy and utilities grew 1.24 percent and 0.78 percent, respectively, leading the gainers.
U.S. major stock indexes saw material growth in the morning session on upbeat quarterly GDP growth data and jobless claims in the previous week.
The U.S. economy grew at an annual rate of 6.9 percent in the fourth quarter of 2021 amid a surge in inventories, according to data issued by the U.S. Commerce Department on Thursday.
Still, the yield of the 2-year treasury bond moved up 4.4 basis points to 1.191 percent, adding pressures to the tech sector.
"Our base case remains that the Fed will raise rates by 25 basis points in March, with additional hikes in June and September ... If there are signs that high inflation is becoming entrenched, then the Fed is likely to raise rates at a more rapid pace," said Brian Rose, senior economist at UBS Global Wealth Management, in a research note.
However, "we do not believe the Fed will need to crush growth to squeeze out inflation," said Mark Haefele, chief investment officer at UBS Global Wealth Management, in a separate research note.
Source: Xinhua
