Cryptocurrency takes a hit as investors dump risky assets


The S&P 500 fell sharply last week as investors priced in the Federal Reserve’s more aggressive approach to raising interest rates.

On Wednesday, the Federal Open Market Committee raised its federal funds target range from 0.75% to between 1.5% and 1.75%. The move marks the first time the Fed has raised interest rates by 0.75% in a single meeting since 1994, and Fed Chairman Jerome Powell said another 0.75% rate hike was also on the table for the Fed’s July meeting. In its updated economic projections, the Federal Reserve raised its personal consumption index inflation outlook for 2022 to 5.2% from 4.3% in March.

On Thursday, the Census Bureau reported that US housing starts fell 14.4% in May, a sign that rising mortgage rates are cooling the housing market. The Commerce Department reported Wednesday that U.S. retail sales unexpectedly fell 0.3% in May, another sign of an economic slowdown.

Bitcoin prices briefly fell to fresh 52-week lows below $20,000 as investors continued to dump risky assets. Tuesday, popular cryptocurrency exchange Coinbase announcement it is laying off 18% of its full-time employees.

The yield on 10-year U.S. Treasuries ended the week around 3.23% after hitting 3.483% on Tuesday, its highest level since 2011.


Kroger on Thursday reported beating first-quarter earnings but issued a disappointing same-store sales forecast, sending its stock down more than 9% for the week.

Investors will receive more quarterly earnings reports from Lennar on Tuesday and from Rite Aid, BlackBerry and FedEx on Thursday.

According to FactSet.

After:Fed announces biggest interest rate hike since 1994 to fight inflation

After:IRS pushes standard mileage rate to 62.5 cents per mile for 6 months as gas prices soar

Economic figures

In the week ahead, investors will receive key economic updates on Wednesday and Thursday when Fed Chairman Powell delivers his semi-annual report to Congress on monetary policy. Separately, the Federal Reserve will release the results of its annual stress test of major US banks on Thursday.

Benzinga is a financial information and data company headquartered in Detroit.


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