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stock market faces volatility as fed rate outlook shifts and earnings disappoint
The stock market faced significant losses as major indexes fell below key levels, influenced by a less-dovish Fed rate outlook and rising Treasury yields. FedEx surged on plans to spin off its Freight business, while Micron Technology and Vertex Pharmaceuticals plummeted due to disappointing guidance and drug study results, respectively. Despite a weak performance from Nike and other companies, a tame inflation report provided some relief on Friday.
markets brace for central bank decisions and economic data releases
Markets are bracing for a prolonged period of high interest rates following the Federal Reserve's recent policy decision, which raised forecasts for inflation and GDP growth while signaling caution on future cuts. The dollar surged, impacting emerging markets and tech stocks, with Micron Technology shares plummeting after disappointing earnings. Meanwhile, global central banks, including the Bank of England and Brazil's central bank, are navigating their own monetary challenges amid rising inflation and economic pressures.
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