Dow Slips After Fed Officials Push Back Against Pivot By Investing.com

By Yasin Ebrahim

Investing.com — The Dow closed slightly lower Wednesday after swinging between gains and losses as Treasury yields resumed their climb after Federal Reserve officials pushed back against bets of a pivot.

The was 0.1% lower, or 8 points, the was down 0.3%, and the fell 0.2%.

San Francisco Federal Reserve President Mary Daly said that the Fed’s goal to keep tightening monetary policy until interest rates are at a restrictive level “hasn’t really changed,” easing investor bets on a Fed pivot.

had reached a point that was potentially a “little bit restrictive, or just at neutral,” Daly added, though insisted that “more rate increases [was] necessary” to bring inflation down.

The ongoing hawkish remarks from the San Francisco Fed president arrived as data showed U.S. rebounded by more than expected in September, and the remains robust pointing to underlying economic strength.

climbed, but tech stocks fought back from session lows as dip buyers helped big tech move off session lows.

A climb in chip stocks also supported the broader move off the lows in tech, with Marvell Technology Group Ltd (NASDAQ:) and Taiwan Semiconductor Manufacturing (NYSE:) up more than 2%.

Twitter Inc (NYSE:), meanwhile, fell 1% after rallying more than 22% a day earlier as the social media giant confirmed Tuesday that Musk had agreed to revive the deal to buy the company for $54.20.

The deal is expected to close “without any major issues over the next few weeks,” Wedbush said in a note, though noted that now the “hard part will be fixing it [Twitter] with monetization and subscriber engagement.”

Tesla Inc (NASDAQ:), however, closed more than 3% lower on expectations that Musk may have to sell more Tesla shares to fund the $44 billion Twitter deal.

As well as a fall in Tesla, consumer discretionary stocks were also weighed down by weakness in cruise line stocks.

Carnival Corporation (NYSE:) fell 4%, while Royal Caribbean Cruises (NYSE:) was down 1%, but Norwegian Cruise Line Ltd (NYSE:) cut losses to end the day flat.

The stumble in the market following two days of gains comes ahead of the monthly Friday’s monthly jobs report that, if surprises to the upside, may pour cold water on hopes for a Fed pivot.