Bank Moves Keep Market's Mood in Check

Dow falls, S&P rises a smidge as banks around the world signal inflation fight continues
By Newser Editors and Wire Services
Posted Jun 22, 2023 3:13 PM CDT
Bank Moves Keep Market's Mood in Check
Traders work on the floor at the New York Stock Exchange in New York, Wednesday, June 14, 2023.   (AP Photo/Seth Wenig)

Stocks had a mixed day on Thursday after central banks around the world showed they're not done cranking interest rates higher in their fight against inflation.

  • The Dow slipped 4 points, or 0.01%, to 33,946.
  • The S&P 500 rose 16 points, or 0.3%, to 4,381.
  • The tech-focused Nasdaq rose 128 points, or 0.9%, to 13,630.

The Bank of England hiked its main interest rate by a bigger margin than expected to a 15-year high. Central banks in Norway, Switzerland, and Turkey also raised borrowing rates, per the AP. In the US, meanwhile, Federal Reserve Chair Jerome Powell reiterated his belief to a Senate committee on Thursday that inflation is still too high and that further increases to rates may be necessary. "Markets are weaker because I think that they're realizing that not just the Federal Reserve, but global central banks are not done," said Megan Horneman, chief investment officer at Verdence Capital Advisors, per CNBC.

Several companies made big moves on a mix of news. Spirit Aerosystems, a major supplier to the world's largest aircraft manufacturers, slumped 8.5%. It is suspending operations at a critical Kansas plant after union workers there rejected a proposed four-year contract and authorized a strike. Office furniture maker Steelcase rose 7% after reporting stronger financial results for the latest quarter than expected.

(More stock market stories.)

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