Friday’s premarket saw a dip in the share prices of all 30 components of the Dow Jones Industrial Average (DJIA), which closed at a -1.02% decrease. This decrease was caused by strong consumer spending data, which worried investors that the Federal Reserve could raise rates more and for longer.
The biggest decliner in the Dow was Boeing Co.’s stock (BA), which dropped 3.9% ahead of the open after The Wall Street Journal reported that the aerospace giant had halted deliveries of 787 Dreamliners due to a documentation issue. Other notable decliners included Salesforce Inc.’s stock (CRM), which decreased by 2.1%, and Walt Disney Co.’s stock (DIS), which dropped by 2.0%.
The Dow’s best performer was American Express Co.’s stock (AXP), which decreased by only 0.1%.
Dow futures dropped 3764 points, or 1.1%. This decrease was a reflection of the overall market sentiment, which had been affected by the strong consumer spending data.
The consumer spending data, which was released on Friday, showed that US consumers had increased their spending by the most in seven months in June. This was a sign of economic recovery, as the US economy has been struggling since the onset of the coronavirus pandemic.
However, the data also raised concerns that the Federal Reserve could raise rates more and for longer, which is something that investors are not keen on. Higher rates could lead to higher borrowing costs and could put a damper on the economic recovery.
The Dow’s decline on Friday was a reflection of these worries. Investors were concerned that the Federal Reserve could raise rates more and for longer, which could lead to a slowdown in the economic recovery.
Ultimately, the market will have to wait and see how the Federal Reserve responds to the consumer spending data. If the Federal Reserve decides to raise rates more and for longer, then the Dow could continue to decline. On the other hand, if the Federal Reserve decides to keep rates steady, then the Dow could rebound.
In any case, the consumer spending data has caused a lot of uncertainty in the markets, and investors are now waiting to see how the Federal Reserve will respond. The Dow’s decline on Friday is a reflection of this uncertainty, and it remains to be seen how the market will react in the coming weeks.