3 months ago
Stock Market

Stocks - Wall Street Falls as Fed’s Clarida Sounds Less Dovish

Investing.com - Wall Street was lower on Tuesday, as market sentiment declined after cautious comments from Federal Reserve Vice

Investing.com - Wall Street was lower on Tuesday, as market sentiment declined after cautious comments from Federal Reserve Vice Chairman Richard Clarida.

The S&P 500 fell 10 points or 0.40% to 2,662.63 as of 9:30 AM ET (14:31 GMT), while the Dow slipped 83 points, or 0.34%, to 24,557.02 and the tech-heavy Nasdaq Composite was down 39 points, or 0.56% to 7,042.18.

Comments from Clarida dampened investor sentiment, as he noted that interest rates are closer to neutral. The central bank should take a gradual approach to rising rates based on data, he added.

“As the economy has moved to a neighborhood consistent with the Fed’s dual-mandate objectives, risks have become more symmetric and less skewed to the downside than when the current rate cycle began three years ago,’’ he said.

Meanwhile, U.S.-China trade also worried investors after President Donald Trump told The Wall Street Journal that it is “highly unlikely” that he will hold off on raising tariff rates on China from 10% to 25%. The increase on $200 billion worth of Chinese imports is expected to take effect on Jan. 1.

Semiconductor maker Advanced Micro Devices (NASDAQ:AMD) was among the top gainers, rising 0.90%, while medical marijuana company Canopy Growth (NYSE:CGC) gained 0.82% and Micron (NASDAQ:MU) increased 0.52%.

Elsewhere, Apple (NASDAQ:AAPL) slumped 1.80% after Trump suggested a 10% tariff increase on iPhones and laptops imported from China. Tesla (NASDAQ:TSLA) fell 2%, while Facebook (NASDAQ:FB) inched down 1% and General Motors (NYSE:GM) decreased 1.31%.

In commodities, gold futures fell 0.07% to $1,227.90 a troy ounce and crude oil jumped 0.19% to $51.73 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, gained 0.19% to 97.162.