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Higher interest rates are coming, and they are likely to remain in place for a long time. The Fed last week raised rates by three-quarters of a percentage point, the third consecutive hike of that size. 'RESET' UNDERWAYTo some degree, in fact, the thrust of Fed policy is to force just such a reevaluation. According to one index maintained by the Chicago Fed, overall financial conditions remain below their historical average, or slightly on the "loose" side, a signal that Fed officials may still have, as many of them put it, "work to do." Rising interest rates paid on safe investments like short-term U.S. Treasuries help that effort by changing the prices of a broad array of other assets.

With Tuesday's drop, the S&P 500 is down 24% from its record high close on Jan. 23. Microsoft and Google-parent Alphabet (GOOGL.O)each lost just over 1% and weighed heavily on the S&P 500. In afternoon trading, the Dow Jones Industrial Average (.DJI) was down 0.74% at 29,045.38 points, while the S&P 500 (.SPX) lost 0.57% to 3,634.13. Analysts have cut their S&P 500 earnings expectations for the third and fourth quarters, as well as for the full year. For the third quarter, analysts now see S&P 500 earnings per share rising 4.6% year-over-year, compared with 11.1% growth expected at the start of July.

A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 27, 2022. Most S&P 500 sector indexes turned lower, with the energy sector (.SPNY) clinging to gains of 1.19%. Analysts have cut their S&P 500 earnings expectations for the third and fourth quarters and for the full year. For the third quarter, profit for S&P 500 companies are seen rising just 4.6% year-over-year compared with the 11.1% growth expected at the start of July. The S&P index recorded no new 52-week high and 113 new lows, while the Nasdaq recorded 24 new highs and 323 new lows.

☆ Bullard: Recession a risk, but more on a global than U.S. basis
▼ + stars: | 2022-09-27 | by ( ) www.reuters.com time to read: +2 min

St. Louis Fed President James Bullard speaks about the U.S. economy during an interview in New York February 26, 2015. But with strong U.S. job growth and strong household balance sheets, "talk about the recession story should be more on a global basis than a U.S. basis," he said, with the possibility of Europe and China pulling the rest of the world into a downturn. Those high rates will, Bullard said, have to be maintained for "some time," a fact that has triggered a fast repricing of financial assets in recent weeks and raised concerns that Fed policy is heightening risks for the global economy. "We certainly do internalize the spillover effects" of Fed policy, Bullard said. Register now for FREE unlimited access to Reuters.com RegisterReporting by Howard SchneiderOur Standards: The Thomson Reuters Trust Principles.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 26, 2022. Technology (.SPLRCT), communication services (.SPLRCL) and consumer discretionary (.SPLRCD) sectors led the rise with gains of about 1% each. Concerns about corporate profits coming under pressure from soaring prices, an economic downturn and higher interest rates have roiled Wall Street in the past two weeks. Analysts have cut their S&P 500 earnings estimates for the third and fourth quarters, and for all of 2022. For the third quarter, S&P 500 earnings are seen rising just 4.6% year-over-year, compared with the 11.1% growth expected at the start of July.

☆ Stock futures are little changed as investors prepare for the S&P 500 to test its June low
▼ + stars: | 2022-09-25 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange during morning trading on September 06, 2022 in New York City. U.S. equity futures were little changed Sunday evening after surging interest rates and foreign currency turmoil pushed the major averages to near their lows of the year. S&P 500 futures and Nasdaq 100 futures were each lower by 0.1%. The broad-market S&P 500 temporarily broke below its June closing low and ended down 1.7%. On Friday, Goldman Sachs slashed its year-end target for the S&P 500 to 3,600 from 4,300.

☆ Stocks could continue skittish trading until interest rate move calms down
▼ + stars: | 2022-09-23 | by ( Patti Domm | In | ) www.cnbc.com time to read: +6 min

The S & P 500, Dow and Nasdaq were all down sharply for the week. The S & P was down 4.6%, ending the week at 3,693. Fed Vice Chair Lael Brainard , St. Louis Fed President James Bullard , San Francisco Fed President Mary Daly and Fed Governor Michelle Bowman are among the speakers. Other global central banks joined the Fed in raising rates, and interest rates around the world rose in tandem. If those levels break, the S & P could touch 3,385 before the selling is over, he said.

☆ Fed officials push back against bulls who want to believe central bank will pivot to rate cuts
▼ + stars: | 2022-08-03 | by ( Bob Pisani | ) www.cnbc.com time to read: +2 min

The message: They are going to keep hiking rates until there are consistent signs inflation is declining toward the 2% target. On Wednesday, it was St. Louis Fed President James Bullard, who said on " Squawk Box " he wanted rates to get to 3.75%-4% this year. "The better bet is that it will take a while for inflation to come back," Bullard told our Steve Liesman. "I think we'll probably have to be higher for longer in order to get the evidence" that inflation is indeed moderating. Starbucks showing consumer strength If you're looking for signs that the consumer is pulling back, you won't see it at Starbucks.

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