Stocks fell on Wednesday, after a shooting in southern California rattled the markets, adding to downward pressure after comments from Fed Chair Janet Yellen. Bobbi Rebell reports.
(Reuters) – Stocks closed sharply lower as a shooting in Southern California added to investor jitters about rising interest rates.
Earlier in Wednesday’s session, Fed Chair Janet Yellen’s suggestion that the central bank was ready to lift rates sent stocks south.
Energy shares such as Exxon and Chevron led the decline for the Dow.
Riverfront CEO Michael Jones:
MICHAEL JONES, CEO, RIVERFRONT INVESTMENT,
“Energy, copper, iron ore, the whole commodities space has still got to rationalize a lot of excess capacity. And that rationalization process is not done.”
Economic data lent support for a rate hike. Private employers added more workers in November, and wage growth picked up in the third quarter.
The Fed said in its Beige Book report, which collects anecdotal information on business activity, that the U.S. labor market tightened modestly in recent weeks and that there has been some upward pressure on wages.
Yahoo shares spiked higher. A source says the company’s board will explore a sale of its core Internet business that includes its news and sports sites.
Qualcomm rose after the chip maker struck a deal to license patents to China’s mobile phone maker, Xiaomi.
Delta Air Lines’ unit revenue rose for the first time in months in November. That lifted its shares.
European stocks closed mixed amid expectations of new stimulus measures when the European Central Bank meets Thursday.