Dow tanks 392 points in stock selloff after Fed signals faster rate hikes
GM will revealed its electric Chevy Silverado at CES
U.S. stocks ended sharply lower on Wednesday after selling picked up following the latest minutes from the Federal Reserve's December meeting which signaled that policymakers are concerned about inflation broadening, which could accelerate planned rate hikes this year.
The Dow Jones Industrial Average, which hit a record earlier, closed down 392 points or 1%, while the S&P 500 and Nasdaq Composite dropped 1.9% and 3.3%, respectively. Investors continued to rotate out of technology.
HIRING PICKS UP WITH 807,000 JOBS CREATED: ADP
|I:DJI||DOW JONES AVERAGES||32244.58||+382.60||+1.20%|
|I:COMP||NASDAQ COMPOSITE INDEX||11675.537599||+45.02||+0.39%|
The selling puts the Dow farther away from its next 1,000 point milestone - 37,000.
Tech was divided among the 30 members with Intel rising over 1%, while Salesforce dipped 8% after UBS cut the stock to a hold.
Other tech giants fell including Apple, Facebook and Google, which posted its largest percentage drop since March.
Oil also rose over 1% to $77.85 per barrel, giving ExxonMobil and Chevron gains.
|USO||UNITED STATES OIL FUND L.P.||59.80||+1.15||+1.96%|
|XOM||EXXON MOBIL CORP.||102.24||+2.40||+2.40%|
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Traders took in the first of this week's labor-related reports ahead of Friday's December jobs report.
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The payroll processing firm ADP reported the creation of 807,000 private-sector jobs, more than double the 400,000 estimate. Also, the final Markit services PMI for December came in at a reading of 57.
Automakers remained in focus after General Motors CEO Mary Barra unveiled the electric Chevy Silverado at the Consumer Electronics Show.
|GM||GENERAL MOTORS CO.||33.60||+0.23||+0.67%|
|F||FORD MOTOR CO.||11.18||-0.13||-1.15%|
GM and Ford are both racing to lead the EV transformation among traditional automakers. On Tuesday, Ford announced it will double the production of its electric F-150 truck. Tesla shares slipped.
Additionally, Amazon and Stellantis announced a deal to team up in developing auto software.
In health, the CDC is reviewing Pfizer's COVID-19 vaccine booster for ages 12-15.
Walmart is stepping up its home delivery push with plans to expand to 30 million homes this year. It also plans to hire 3,000 drivers. The move takes aim at retail giant Amazon. The retailer also disclosed it will work with GM and Brightdrop to develop a fleet of electric delivery trucks.
and Beyond Meat and Yum! Brands KFC are teaming up to offer ‘Beyond Fried Chicken’ which will roll out nationwide on January 10.
|YUM||YUM! BRANDS INC.||128.86||-0.01||-0.01%|
|BYND||BEYOND MEAT INC.||15.17||-0.38||-2.44%|
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FOX Business' Ken Martin and The Associated Press contributed to this report.