September 8, 2023

Stocks Surge as Fed Officials Suggest Potential Rate Relief: Latest Stock Market Updates

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Stocks Edge Upward as Fed Hints at Rate Hike Delay

Stocks edged steadily upward Friday, with the Nasdaq shaking off an Apple-fueled slide, after officials hinted the Federal Reserve could hold off from hiking interest rates at its meeting in September.

Nasdaq Recovers from Apple Slump

The S&P 500 added about 0.2%
The Dow Jones Industrial Average was up 0.1%
The Nasdaq Composite put on around 0.2% as Apple’s shares recovered from a two-day slump that dragged down tech stocks.

Fed Officials Signal Rate Hike Delay

Investors are weighing comments by several Fed policymakers that appeared to signal they could hold off from further rate hikes this year. Federal Reserve Bank of New York President John Williams said that US monetary policy is “in a good place,” though he did stress officials would be guided by economic data.

Inflation Data and Rising Energy Prices

Inflation data is key to the Fed’s decision on whether to keep rates higher for longer. Concerns are growing about rising energy prices and their potential to keep price pressures hot. The start of a strike at Chevron’s natural gas plants in Australia was seen as driving a jump in European gas futures on Friday. This follows a recent run-up in oil prices that also spread worries.

Apple Shares Tumble

Reports of Chinese curbs on the use of the iPhone by government officials and inside state companies sent Apple shares tumbling this week, wiping almost $200 billion off the stock’s market value. The slide sent jitters through markets, hitting the iPhone maker’s Asia suppliers in particular. The stock was up just over 1% in the early going on Friday.

Analysts Suggest Apple’s Plunge May Not Be Over

With Apple just days away from launching its next iPhone model, some analysts have soured on the stock, suggesting that its plunge may not be over yet. At the same time, Samsung is positioning its new Galaxy foldable smartphones as key contenders to take market share from the iPhone.