Dow Plunges More than 670 Points, Logging Worst Week in 2 years
Markets plunged more than 670 points, logging the worst week in 2 years. Lindsey Bell, Investment Strategist at CFRA Research, was with us to break down the factors causing stocks to tumble.
A positive jobs report that revealed 200,000 jobs in January and a 2.9% increase in wages are giving the Fed more ammo in its case to raise rates at a faster pace. It's not just rates that are a cause of concern, said Bell. The analyst said we are seeing China had a tough week over concerns over economic growth and financial regulation.
Bell said we also can't underestimate the impact the release of the GOP surveillance document had on the markets. This is a form of uncertainty, which could lead to investors pulling money out of the markets, she added. Bell said she thinks this is a healthy move downward and profit-taking is probably necessary. She said a 10% pullback could be in the cards.
Chair Jerome Powell says the Federal Reserve only expects to cut rates once in 2024. But at least, as one economist says, ‘rate hikes are off the table.’
With the Fed likely set to leave rates unchanged, lower and middle income Americans will continue dealing with higher credit card interest and expenses.
