Connect with us

Stock Market

Wall Street Closes Lower After Fed’s Latest Interest Rate Hike By Reuters

Avatar

Published

on


© Reuters. FILE PHOTO: Morning sunlight falls on the facade of the New York Stock Exchange (NYSE) building in Manhattan in New York City, New York, US January 28, 2021. REUTERS/Mike Segar/File Photo

Written by Chuck Mikolajczak

NEW YORK (Reuters) – U.S. stocks closed lower in volatile trade on Wednesday after the Federal Reserve announced an expected policy rate hike of 50 basis points, but its economic outlook points to higher rates for longer.

The central bank raised interest rates by half a percentage point on Wednesday, forecasting at least an additional 75 basis points of increases in borrowing costs by the end of 2023, as well as a rise in unemployment and a near halt in economic growth.

The Fed’s latest quarterly summary of economic outlooks shows that US central bankers see the policy rate, now in the 4.25% to 4.5% range, at 5.1% by the end of next year, according to the average estimate of all 19 federal policymakers, Up from 4.6% at the end of September.

In comments after the statement, Fed Chairman Jerome Powell said it was too early to talk about cutting rates as the focus is on making the policy stance accommodating enough to push inflation down to the central bank’s 2% target.

Economic data released on Tuesday showing consumer inflation slowing for November increased speculation that a Federal Reserve move to halt interest rate hikes could be on the horizon next year.

“Maybe they’re using these kind of very aggressive point-by-point predictions to take out any easing momentum that’s happened in the last couple of months,” said Reese Williams, chief strategist at Spouting Rock Asset Management in Bryn Mawr, Pennsylvania.

“Circumstances have softened, and this is their way of unwinding, they won’t let any easing really happen until the unemployment rate goes up.”

According to preliminary data, the S&P 500 index lost 24.66 points, or 0.61%, to close at 3,994.99 points, while the Nasdaq Composite Index lost 86.14 points, or 0.77%, to 11,170.67 points. The Dow Jones industrial average fell 149.08 points, or 0.44 percent, to 33,959.56 points.

The strategy of large interest rate increases by major central banks around the world this year has heightened fears that the global economy could push into recession and hit riskier assets like stocks this year.

Each of Wall Street’s three major averages is on track for its first annual decline since 2018, and its largest annual percentage drop since the 2008 financial crisis.

Tesla (NASDAQ:) Inc fell after a Goldman Sachs (NYSE::) analyst cut a price target for the electric car maker’s stock.

Communication charter Inc (NASDAQ:) tumbled as brokerages slashed their price targets after the telecoms services company’s massive spending plans to modernize the Internet at a higher speed.

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Stock Market

Red Flags That Your Spouse Is Hiding Money (And What To Do About It)

Avatar

Published

on

By

Marriage can be hard enough without one spouse hiding money from the other.

When financial infidelity occurs in the form of “hidden cash,” a marriage or a live-forever relationship can easily be ended.

The truth is About 30% of American couples suffer from financial infidelity. Other evidence shows that more than 75% of couples describe the hidden money situation as negative and common 10% of these scenarios end in divorce.



Source link

Continue Reading

Stock Market

US judge orders Norwegian Cruise Line to pay $110m for use of Cuba port By Reuters

Avatar

Published

on

By


© Reuters. Norwegian American Airlines cruise ship Marina arrives in Havana Bay, Cuba on March 9, 2017. REUTERS/Alexander Meneghini/File/File Photo

Written by Brian Ellsworth

MIAMI (Reuters) – Norwegian Shipping Line (NYSE) has to pay $110 million in compensation for the use of a port confiscated by the Cuban government in 1960, a US judge said Friday, marking a significant milestone for Cuban Americans. Who are seeking reparations for the Cold War era. Assets confiscation.

The decision by US District Judge Beth Bloom in Miami follows her decision in March that use of the Havana Cruise Terminal constituted smuggling of forfeited property belonging to the plaintiff, Delaware-registered Havana Docks Corp.

The decision read: “The judgment is made in favor of Plaintiff Havana Docks Corporation and against Norwegian Cruise Line Holdings, Ltd.”

“The plaintiff was awarded $109,848,747.87 in damages,” it says, adding that the Norwegian must also pay an additional $3 million in legal fees and costs.

Norwegian Cruise Line did not immediately respond to a request for comment.

Cuban President Miguel Diaz-Canel has sharply criticized the Helms-Burton Act, calling it an extraterritorial violation of international law.

Havana Docks also sued Carnival Cruise Lines (NYSE: ), Royal Caribbean (NYSE:) and MSC under the Helms-Burton Act, which allows US citizens to sue over the use of property seized in Cuba after 1959.

The ruling could fuel more lawsuits by Cuban exiles pursuing claims, worth $2 billion, according to one estimate, over asset seizures under late Cuban leader Fidel Castro.

It may also serve as a reminder to multinational companies of the complexities that can come with doing business in Cuba.

In 2016, US cruise ships began traveling to Cuba for the first time in decades after a détente negotiated by former President Barack Obama eased some provisions of a Cold War US embargo.

But the Trump administration in 2019 ordered a halt to all such cruises amid efforts to pressure Cuba over its support for Venezuelan President Nicolas Maduro, Washington’s ideological foe.

The Trump administration has also allowed US citizens to sue third parties for using property seized by Cuban authorities, a provision of the Helms-Burton Act that every previous president has waived since the law was passed in 1996.

Havana Docs says Cuba, which has been under a US trade embargo for decades, has never compensated it for taking the drug.

The four cruise lines sued in 2019 in the US District Court for the Southern District of Florida. Bloom in March held the companies liable for damages under the Helms-Burton Act, also known as the Libertad Act.

According to the US-Cuban Economic and Trade Council, a nonprofit organization that provides information on relations between the two countries, 5,913 validated claims related to property seized in Cuba represent an estimated liability of nearly $2 billion.

Forty-four lawsuits have been filed under Title III of the Helms-Burton Act, the organization says.

“For the current plaintiffs of Cuban descent, (the decision) will give them a moment of relief,” said John Cavulich, the group’s president. “It will give them a moment to say ‘You can run but you can’t hide,'” Cavulich said.

Source link

Continue Reading

Stock Market

Is a Royal Caribbean or Carnival beverage package worth it?

Avatar

Published

on

By

An all-inclusive beverage package that gives you access to beer, wine, liquor, bottled water, soda, specialty coffee, and even shakes/juices may cost more than your cruise fare.

This is especially true right now when many cruise cabins are being sold at discounted prices while the drinks package prices have gone up.

Deciding whether to purchase a drink package is a challenge because you have to estimate whether you will be drinking enough to cover the cost. Or, more importantly, whether you’d spend more if you decided not to purchase a drink package.



Source link

Continue Reading

Trending