Stock Market tumbles for the 3rd consecutive week - Investors take a hawkish stance

Introduction

Welcome to our Monday news highlights. Hope everyone had a good weekend. Our article today looks at the stock market and the views of analysts. The Federal Reserve looks to be taking on a more hawkish stance in its monetary policy approach, which has created some uncertainty among investors.

Stock Market

US stock markets closed on Friday with losses as the Federal Reserve realigns its stance to be increasingly hawkish. In a panel discussion with the IMF (International Monetary Fund), Fed chair Jerome Powell indicated that the Fed is moving too quickly in its decision making on interest rates. Powell said that a rate hike of 50 basis points is up for discussion during the Fed's meeting early next month but leaves the door open for additional moves in the months ahead.
Osterweis Capital Management Portfolio Managers have quoted the Fed indicating that they can increase the target fed funds rate to cool off the economy while reducing its balance sheet to lift longer maturity rates and contain inflation. However, according to portfolio managers, implementing a dual-pronged quantitative strategy requires finesse that the Federal Reserve is not known for.

Performance Index

a) Dow DJIA - (-2.82%)

b) S&P 500 - (-2.77%)

c) Nasdaq Composite (COMP) - (-2.55%)

The performance of the three indexes has been down for the last three to four weeks.

Investors next week will be eyeing March inflation data. Solloway at SEI indicates the Personal-Consumption-Expenditures price index to show higher living costs due to the rise in prices of food and energy.

Russia-Ukraine

The market is eyeing Russia & Ukraine closely as they anticipate additional supply chain disruptions and market volatility as the war continues.
Clifford Bennet, Chief Economist at ACY Securities, believes that the only way to "protect your investment portfolio is to be cautious on equities and buying gold, oil and the Us dollar".
US Officials meet today with President Volodymyr Zelensky. The Ukrainian president is appealing for additional military aid from the US.
Ukraine's top economic advisor, Oleg Ustenko, released a statement indicating $1 trillion of losses for Ukraine as houses are destroyed, and the country's infrastructure disrupted.

Gold Prices

On Monday, 25th April, Gold prices open with a new low at $1,927/ounce.
The Gold/USD is moving as investors are focused on the Federal Reserve and bracing for a faster-than-expected pace adopted by the central bank to reduce inflationary pressures.
Analysts at TD Securities have said that despite the hawkish stance of the Fed due to geopolitical uncertainty, the war on Ukraine and demand for havens, there are several remaining participants with an appetite for gold.