US stocks have fallen after hitting new highs for several days, with the declines of the three major indexes ranging from 0.2% to nearly 1%. Federal Reserve Chairman Powell rarely commented on the stock market, saying that its valuation is quite high and the market fell from a high level. He also confirmed that he would make prudent interest rate cuts, and gold prices continued to rise, with New York gold futures rising to a level above $3,800 for the first time closing.
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September 23 (Tuesday)
l The Dow Jones Index fell 88.76 points or 0.19% to 46,292.78 points.
l The S&P 500 fell 36.83 points or 0.55% to 6,656.92 points.
l The Nasdaq fell 215.50 points or 0.95% to 22,788.98 points.
l New York’s October oil futures closed at $63.41 per barrel, up $1.13 or 1.8%, ending the 4-day decline.
l New York’s December gold futures closed at 3,815.7 yuan per ounce, up 40.6 dollars or 1.1%.
l Bitcoin was down $111,943.09 as of 5 p.m. Eastern Time, down $826.09 or 0.73%.
l The U.S. 10-year Treasury bond interest ratio closed at 4.120%, down 2.3 points.
Technology stocks generally fell, and the “big seven” all saw a big hit. Nvidia, which invested $100 billion to OpenAI, rose nearly 4% last day and then fell by about 2.8%, while Amazon fell 3%. Oracle, which has a lot of good news recently, fell 4.3%.
Opendoor, an online real estate agency that has been speculating in the past two months, has plummeted by 15%. The company has major shareholders reduced its holdings in large numbers, and hedge fund managers criticized its business model; the other agency stock, Better Home & Finance, rose by more than 30%.
Powell delivered a written speech saying that the future path to cut interest rates needs to be quite cautious: “Inflation risks tend to rise and employment risks tend to slow down in the short term, which is a challenging situation. Two-way risk means there is no risk-free path.”
“We do look at the overall financial situation and ask ourselves if our policies are affecting the financial situation the way we want it to. But you’re right, for multiple indicators, such as stock prices, the valuation is really high.”
On the eve of last week’s interest rate, the market is increasingly convinced that the Federal Open Market Committee (FOMC) will lower the benchmark overnight loan interest rate, driving sharp rises in stocks and other assets. Stocks continued to hit a string of new highs in major indexes since Wednesday’s decision to cut interest rates by one quarter percentage point.
Speaking of mortgage rates, Powell also said: “The market will listen to us and follow us, and then estimate the direction of interest rates, which will be reflected in the price in advance.”
Although Powell mentioned the high valuation of stock markets, he also said that the current “is not the time when financial stability risks heat up.”
