5 things to know about trading on Wednesday.
Dear investors read below how events of trading are taking place on a Wednesday trading.
A 13-YEAR HIGH IN MORTGAGE RATES
Recently, mortgage rates in the US climbed to their highest point in more than 13 years. Key sectors have seen severe decreases, according to recent economic data. As long as energy prices stay high, inflation may still increase in the upcoming months, according to Hani Redha, a portfolio manager at PineBridge Investments. The central banks, who have long been our allies, are warning us to anticipate suffering, Redha remarked. “The only thing that matters at this time is that inflation rate. Even a significant slowdown in growth won’t be enough to sway the Fed from its current track.”
SALES OF PREVIOUSLY OWNED HOMES:
According to the National Association of Realtors, sales of previously owned homes decreased by 3.7 percent to a seasonally adjusted annual rate of 5.40 million units.
The reading would be the lowest in almost two years and the fourth consecutive month of decline (since June 2020). Additionally, it would represent a 16.8% drop from January, when sales were chugging along at a 6.49 million yearly rate. The claim comes in the wake of statistics released on Thursday that revealed new home building had hit a 13-month low as a result of rising prices and financing costs. It also prepares for the new home sales report due out on Friday, which is predicted to fall 0.5 percent to a seasonally adjusted annual rate of 588,000 in May.
The Dow Jones Industrial Average, which began correcting on March 7, ended the gloomy day on June 16 nearly 19 percent below its record-breaking high closing high on January 4. The S&P 500 finished about 23.5 percent below its record closing on January 3, entering a bear market on June 13 for the first time since early 2020.
The Nasdaq is 32.75 percent below its top from November 19, having been in a bear market since March 7. The small-cap Russell 2000 is approximately 32% below its high from November 8, having entered a bear market on January 27.
The big-cap consumer/tech titans gained more than 1 percent on Friday, but they still ended the week considerably lower (down 4.6 percent on average), as investors sold growth and momentum stocks in response to rapid Fed tightening and a hawkish change in global monetary policy.
Bitcoin dropped over the weekend and has lost more than 70% of its value since reaching a peak of over $67,000 in 2021. It has recently regained some worth. In 2022, Bitcoin has suffered losses, extending a slide that began in November of last year.
The price hovered around $40,000 for the majority of the year, but two significant decreases – one at the start of May and one last week – have reduced the value to less than one-third of that November high. At its previous record high of $19,363.16 in December 2017, bitcoin is currently worth almost the same as it was at that time. The currency dropped for six months and was worth about $30,000 before rising to new highs in 2021.