Shares of banks and other financial institutions ticked down as investors parsed wholesale inflation data for Federal Reserve policy implications.
For much of 2022, speculation about Fed policy has trumped all other market factors, said one strategist. "There's no getting around it, it's all about the Fed, it's all about inflation, it's all about the Fed's reaction to it," said Quincy Krosby, chief global strategist at brokerage LPL Financial.
The Fed's policy statement next week is likely to see a down-shift to a 50-basis-point rate increase, said economists at brokerage Goldman Sachs Group. "Fed officials are likely to pair a slower pace with a higher projected peak funds rate in the dot plot in order to prevent further easing in financial conditions," said the Goldman economists.
Coinbase fell after short-selling pioneer Jim Chanos said he was still betting against the cryptocurrency exchange.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
12-09-22 1746ET
