LIVE UPDATES: Stocks whipsaw overnight, diesel surges, gas higher, oil, crypto lower

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incoming update…Crypto prices lower overnightBitcoin, Ethereum and Dogecoin were all lower overnight. (Getty Images)

Cryptocurrency prices for Bitcoin, Ethereum and Dogecoin were all lower early Tuesday. 

At approximately 5 a.m. ET, Bitcoin was trading at $19,100 (-0.21%), or lower by $40. 

For the week, Bitcoin was trading lower by nearly 2.4%. For the month, the cryptocurrency was lower by nearly 12%. 

Ethereum was trading at approximately $1,285 (-0.5%), or lower by more than $6.4. 

For the week, Ethereum was trading lower by more than 2.5%. For the month, it was trading lower by approximately 25.25%.

Dogecoin was trading at $0.059246 (-0.51%), or lower by approximately $0.000303.  For the week, Dogecoin was lower by nearly 1.5%. For the month, the crypto was lower by nearly 8%.Posted by FOX Business Team ShareDiesel prices up more than 6 cents per gallon, gas moves higherGas and diesel prices were both higher early Tuesday morning. (gasprices.aaa.com)

Gasoline prices nationwide edged slightly higher early Tuesday morning, reaching $3.923. The price on Monday was $3.919. The price Sunday was $3.91. 

Gasoline prices had dropped for several weeks after reaching an all-time high of $5.016 on June 14, approximately 17 weeks ago, before starting to rise once again almost two weeks ago. 

One week ago, the average price of a gallon of gasoline nationwide was $3.805. One month ago, that same gallon of gasoline cost $3.718. On year ago, a gallon of gasoline cost $3.274. 

Diesel prices nationwide Tuesday morning shot up to $5.122. On Monday, a gallon of diesel sold nationwide for $5.064, while on Sunday morning a gallon of diesel on Sunday cost $5.03. 

One week ago, a gallon of diesel cost $4.863.One month ago, a gallon of diesel cost $5.013. One year ago, a gallon of diesel cost $3.466.Posted by FOX Business Team ShareBrainard: Higher interest rates will slow US economyFed Vice Chair Lael Brainard reiterated the central bank’s plan to keep raising rates until definitive signs appear the recession is on the downturn. (Getty Images)

Federal Reserve Vice Chair Lael Brainard on Monday reiterated the U.S. central bank’s plan to continue tightening monetary policy until there is clear evidence that inflation has slowed down, warning the U.S. economy will likely slow further as a result of elevated interest rates. 

“Monetary policy will be restrictive for some time to ensure that inflation moves back to target over time,” Brainard said. “It will take time for the cumulative effect of tighter monetary policy to work through the economy and to bring inflation down.” 

The Fed has already raised interest rates five times this year as it tries to wrestle inflation that is still running near a 40-year high back to its 2% target goal. 

In its latest move, the Fed approved a third consecutive 75-basis-point rate hike, lifting the federal funds rate to a range of 3% to 3.25% near restrictive levels. It also indicated that more super-sized increases are likely in the coming months. 

Brainard the Fed’s No. 2 and a permanent voting member of the Federal Open Market Committee said during prepared remarks delivered before the National Association for Business Economics in Chicago that the economy is likely to cool over the next year as rates remain elevated. 

“The moderation in demand due to monetary-policy tightening is only partly realized so far,” she said. The economy has already cooled significantly in the U.S., with gross domestic product the broadest measure of goods and services produced in a nation contracting by 1.6% in the winter and 0.6% in the spring. 

Brainard noted that Americans’ savings have also dwindled faster than the Fed anticipated, suggesting there could be a pullback in spending soon. 

There is a growing expectation on Wall Street that the Federal Reserve will trigger an economic downturn as it raises interest rates at the fastest pace in three decades to catch up with runaway inflation. 

Fed Chair Jerome Powell has all but conceded the central bank will tip the economy into a recession with its rapid rate hikes, warning that higher rates will cause economic “pain.”Posted by Megan Henney ShareStocks whipsawing as investors worry about Fed ratesUS stocks whipsawed early Tuesday morning as investors continue to show concern about what the Fed will do next. (Associated Press)

SymbolPriceChange%ChangeI:DJI$29,202.88-93.91-0.32SP500$3,612.39-27.27-0.75I:COMP$10,542.10-,110.30-1.04

U.S. stocks whipsawed early Tuesday morning as investors voice concerns about the Federal Reserve tightening rates and making borrowing more difficult.

Stocks fell Monday, continuing a stretch of volatility as concerns about Federal Reserve tightening, escalation in the Ukraine war, and China-trade policy shake markets. 

The S&P 500 turned lower after opening with slight gains, shedding 27.27 points, or 0.7%, to close at 3612.39. The Dow Jones Industrial Average edged down 93.91 points, or 0.3%, to 29202.88 while the Nasdaq Composite fell 110.30 points, or 1%, to 10542.10. That’s the lowest closing value for the tech-heavy Nasdaq since July 2020, according to Dow Jones Market Data.

Shares of chip-manufacturers suffered losses stemming from the Biden administration’s new restrictions imposed on semiconductor exports, aimed at hampering China’s military.

The PHLX Semiconductor Sector dropped 3.5% on Monday to its lowest closing level since November 2020. Those losses also helped drag down stocks for businesses that are major chip users.

“The new restrictions placed on selling semiconductors to China are big reason why we are seeing the downtrend in those stocks,” said Randy Frederick, managing director of trading and derivatives at Schwab Center for Financial Research.

Technology stocks represent about one-fourth of the S&P 500, noted Mr. Frederick. Chip maker Qualcomm sank $6.31, or 5.2%, to $114.60 on Monday while Broadcom fell $22.78, or 5%, to $437.70. Technology was the worst performer among the S&P 500’s 11 sectors, down 1.6%.

Shifting expectations about more interest-rate increases from the Fed have been the primary driver of recent stock-swings.

Friday’s jobs report showed the labor market is still tight as the unemployment rate fell back to a half-century low, exacerbating concerns that the Fed could tighten financial conditions more aggressively.

Hopes for a “Fed pivot” — in which the central bank would pause interest-rate increases and jolt stocks higher — have largely been dashed.

Traders now expect the benchmark federal-funds rate to touch 4.7% by the second quarter of 2023, according to FactSet derivatives data, more aggressive than the Fed’s own forecasts.

“Inflation is still high and the labor market is red hot — there’s nothing to suggest the Fed will be dovish or pivot for at least several months,” said Michael Antonelli, market strategist at Baird. Investors are looking ahead to the next U.S. inflation data release Thursday as another important indicator for where monetary policy might be headed.

“There’s still that hangover in markets. The U.S. labor market is still incredibly strong and the Fed has a single mandate right now: inflation, ” said Fahad Kamal, chief investment officer at Kleinwort Hambros. “The most important number in the world right now” is the coming inflation figure, he said.

Meanwhile, Asian shares were mostly lower on Tuesday as losses in technology-related shares weighed on global benchmarks. 

Taiwan dropped 4.4% after reopening from a holiday in the first trading session since the U.S. imposed new limits on exports of semiconductors and chip-making equipment to China. TMSC, the worlds biggest chipmaker, plunged 8.3%. 

Japan’s Nikkei 225 declined 2.6% to 26,401.25. South Korea’s Kospi lost 1.8% to 2,192.07. Both markets also were reopening after holidays on Monday. Hong Kong’s Hang Seng dropped 2.2% to 16,830.73. The Shanghai Composite gained 0.2 to 2,979.79, while Australias S&P/ASX 200 lost 0.3% to 6,645.00. 

Japan and South Korean markets are catching up to previous global market losses, with their exposure to the tech sector spurring a greater extent of the sell-off as mirrored in Wall Street, Yeap Jun Rong, a market strategist at IG in Singapore, said in a report. 

In a bit of encouraging news, Japan reopened to generally unrestricted tourism on Tuesday after more than two years of COVID-19 restrictions. Pent-up travel spending could help lift the world’s third largest economy as it grapples with slowing global growth and inflation.Posted by Associated Press Share Oil prices extend losses for second-straight dayOil prices fell for the second consecutive day early Tuesday after falling 2% on Monday. (Getty Images)

SymbolPriceChange%ChangeUSO$73.78-1.32-1.76XOM$98.84-2.19-2.17CVX$157.14-2.89-1.81

Oil prices slid on Tuesday , extending losses of nearly 2% in the previous session, as a stronger U.S. dollar and a flare-up in COVID-19 cases in China raised concerns of slowing global demand. 

Brent crude futures fell 21 cents, or 0.2%, to $95.98 a barrel by 0618 GMT, after falling $1.73 in the previous session. 

U.S. West Texas Intermediate crude was at $90.82 a barrel, down 31 cents, or 0.3%, after losing $1.51 in the previous session.

The dollar hit multi-year highs on Tuesday, with worries about rising interest rates and geopolitical tensions unsettling investors. A strong greenback reduces demand for oil by making it more expensive for buyers using other currencies. 

Rate increases to date were starting to slow the economy and the full brunt of tighter policy would not be felt for months to come, Fed Vice Chair Lael Brainard said on Monday. 

“Strong jobs data has strengthened expectations of another 75 basis points rate hike at next month’s Fed meeting, leaving downside risk for global oil demand,” said ANZ Research analysts in a note. 

The sustained zero COVID-19 policy in China ahead of the Communist Party Congress is “not helping” demand, the analysts added. 

COVID-19 cases in the world’s second-largest oil consumer rose to their highest since August. Its services activity in September contracted for the first time in four months, as pandemic restrictions weighed. 

Capping losses, the Organization of the Petroleum Exporting Countries and allies including Russia, together known as OPEC+, decided last week to lower their output target by 2 million barrels per day, further raising concerns about tightening oil supplies. 

“More critical is the bullish signal OPEC+ sends here by responding to short-term market dynamics and trying to stabilise or raise prices despite the medium view that demand growth will outpace supply growth for the remainder of the year,” said Stephen Innes, managing partner at SPI Asset Management. “We are back on the teeter-totter trying to weigh this week’s economic demand malaise versus tight market,” Innes added.

EU sanctions on Russian crude and oil products will take effect in December and February, respectively, while the bloc last week gave its final approval for a new batch of sanctions against Russia including a price cap on Russian oil exports. 

On Friday, Russia issued a decree allowing it to seize Exxon Mobil’s 30% stake and gave a Russian state-run company the authority to decide whether foreign shareholders including India’s ONGC Videsh can retain their participation in the project. Posted by Reuters Share

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