Stock Market Today: Stocks Fall Again as Fed Hangover Persists
The major market indexes notched a fourth straight loss as Powell's rate-hike warning kept investor sentiment in check.


Stocks closed lower for a fourth straight day Thursday as Federal Reserve Chair Jerome Powell's warning from Wednesday's press conference continued to ring in investors' ears.
Specifically, after the Fed raised rates another 75 basis points, Powell said it was "very premature" to expect the central bank to start talking about pausing its rate-hike strategy, especially as inflation remains stubbornly high. (A basis point = 0.01%.)
Expectations for more rate increases from the Fed sent the 10-year Treasury yield soaring 9.0 basis points to 4.151%. As a result, stocks in the rate-sensitive technology sector (-2.9%) bore the brunt of today's selling, with the tech-heavy Nasdaq Composite sinking 1.7% to 10,342. The broader S&P 500 Index gave back 1.1% to 3,719, while the blue-chip Dow Jones Industrial Average fell 0.5% to 32,001.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Also in focus today was the latest weekly jobless claims data, which comes ahead of tomorrow's highly anticipated October jobs report. While initial claims edged down 1,000 to a seasonally adjusted 217,000, continuing claims were up nearly 29,000 to 1.25 million.
"It appears that we are finally starting to see more signs of labor market weakness, which means we might be a couple months away from seeing job losses with the nonfarm payroll report," says Edward Moya, senior market strategist at currency data provider OANDA. "If the labor market can cool quickly, the Fed might be done tightening in February."
One Place to Find Cheap Stocks
But for now, the Fed – and its global peers – are continuing their fight against stubbornly high inflation. Earlier today, the Bank of England (BoE) increased its own benchmark interest rate by 75 basis points – the largest such move in over three decades. The BoE also suggested a "very challenging" path forward for the U.K. economy as Britain's central bank aims to curb inflation.
The reaction in the markets was a lower pound and spiking yields on U.K. sovereign debt. "It's proved to be yet another dismal day for the pound as forecasts of a long recession cast a dark shadow over the U.K. economy," says Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. As for U.K. stocks, they showed resilience in the wake of the BoE decision, with London's FTSE ending the day up 0.6%.
Over the long term, though, the FTSE has significantly underperformed the S&P 500 – and is currently trading at its lowest valuation in more than a decade. Despite these long-term troubles, there are still plenty of quality names that can be found on the other side of the Atlantic. Here, we take a closer look at where some of the best bargains are among cheap U.K. stocks. Check them out.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Want To Retire at 55? See If You Can Answer These Five Questions
Who said you can’t retire at 55? If you say yes to these questions, you may be on your way to an early retirement.
-
I'm 57 with $4.1 million and looking to retire abroad in a few years. I no longer see the point in contributing to my 401(k). Am I wrong?
We ask financial experts for advice.
-
S&P 500 Slips Ahead of Fed Week: Stock Market Today
All eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and Commentary
The September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market Today
Wednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
Hot August CPI Report Doesn't Shift the Rate-Cut Needle: What the Experts Say
The August CPI came in higher than forecast on a monthly basis, but Wall Street still expects a rate cut at next week's Fed meeting.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market Today
Another down day for Apple held the Dow Jones Industrial Average back, though.
-
Stocks Grind Up to New All-Time Highs: Stock Market Today
UnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
Markets Prepare for August Inflation Data: Stock Market Today
Apple CEO Tim Cook is still important, but price action this week is as much about incoming inflation data ahead of next week's Fed meeting.
-
Stocks Slip as Job Growth Stalls: Stock Market Today
The August jobs report came in much weaker than expected, while the unemployment rate ticked higher.