Shares of banks and other financial institutions edged lower as investors weighed the rate outlook.
The Bank of England raised its key interest rate by a half percentage point, the largest single step in more than a quarter-century, even as it predicted the U.K. economy will fall into recession later this year, underscoring global central banks' urgency in fighting a surge in inflation.
Meanwhile, the president of the Cleveland Federal Reserve said that the U.S. central bank needs to keep raising interest rates until high inflation has begun to subside, joining a coterie of senior Fed officials who've backed more aggressive measures.
In earnings news, Apollo Global Management reported its second-straight quarterly loss, with a $2 billion deficit stemming largely from rising interest rates that drove down the value of assets held by the firm's retirement services operations.
Mortgage rates dropped to their lowest level since April, offering a reprieve to prospective home buyers who have been hit this year with higher rates and surging prices. The average rate on a 30-year fixed-rate mortgage is 4.99% this week, down from 5.30% a week earlier, according to a survey by mortgage giant Freddie Mac. Though rates remain well above their levels from a year ago, they have fallen swiftly in recent weeks from their 13-year high of 5.81% in June.
Shares of Coinbase Global surged higher after the cryptocurrency exchange announced a partnership with money manager BlackRock to offer direct access to bitcoin to some institutional clients.
Goldman Sachs said regulators are investigating business practices at its credit card unit. The bank said in a securities filing that the Consumer Financial Protection Bureau is looking into several areas, including how the bank handles customer refunds and resolves billing disputes. The regulator is also looking into Goldman's advertisements and how it reports consumer information to credit bureaus, the bank said.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
08-04-22 1717ET
