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US stocks fall as investors anticipate another 75 basis point rate hike from the Fed this week

Matthew Fox   

US stocks fall as investors anticipate another 75 basis point rate hike from the Fed this week
  • US stocks fell on Monday as investors gear up for another Fed interest rate hike later this week.
  • Fed chair Jerome Powell is expected to hike rates by another 75 basis points at its FOMC meeting on Wednesday.
  • Investors also continue to focus on third-quarter earnings results.

US stocks moved lower on Monday as investors get ready for another outsized interest rate hike from the Federal Reserve on Wednesday.

Fed chairman Jerome Powell is expected to announced that the US central bank will raise rates by 75 basis points at its upcoming FOMC meeting in its bid to tame inflation that has been driven by higher wages, higher services prices, and higher commodity prices. After this Wednesday's meeting, the Fed is expected to hike interest rates by at least 50 basis points in December.

Aside from more rate hikes, investors continue to focus on third-quarter earnings results, which have been mostly beating expectations. So far, 52% of S&P 500 companies have reported results, and of those companies, 72% are beating profit estimates by a median of 5%, according to data from Fundstrat.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Monday:

Here's what else is happening this morning:

In commodities, bonds and crypto:

  • West Texas Intermediate crude oil fell 1.54% to $86.55 per barrel. Brent crude, oil's international benchmark, fell 3.37% to $92.54.
  • Gold fell 0.42% to $1,637.90 per ounce.
  • The yield on the 10-year Treasury rose 3 basis points to 4.05%.
  • Bitcoin rose 0.85% to $20.702, while ether jumped 2.20% to $1,619.


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