“At first glance, it was looking like Christmas might have come early for Wall Street,” one analyst said about stocks’ brief rally before Fed chair Jerome Powell pulled the rug on investors.
Stocks fell Wednesday as Federal Reserve Chairman Jerome Powell crushed short-lived optimism about monetary policy loosening any time soon.The Dow Jones Industrial Average fell 2.6%, or 850 points, after Powell’s 2:30 EST press conference following the Fed’sThe S&P 500 and tech-heavy Nasdaq fell 3% and 4% during the period, respectively.
The Dow had risen more than 300 points immediately after the hike as investors clung to a line in the press release indicating that the Fed could soon factor in the impact of rate hikes on the stock market as optimism for less hawkish plans. “At first glance, it was looking like Christmas might have come early for Wall Street,” OANDA analyst Edward Moya wrote.
Bond markets simultaneously fell, with 10-year U.S. Treasury yields rising as much as 10 basis points to 4.08% as investors piled into safer assets.“It is very premature, in my view, to think about or be talking about pausing our rate hikes,” Powell said Wednesday as he held steady in his commitment to bring down sticky inflation. “We have a ways to go.”This is the sixth rate increase of 2022, raising the federal borrowing rate to a target rate of 3.75% to 4% after two years at 0% to 0.25%.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
San Francisco-Based Lyft to Lay Off Nearly 700 EmployeesRide-hailing service Lyft is cutting 13% of its workforce, almost 700 employees, as it attempts to reduce operating expenses.
Read more »
Lyft laying off nearly 700 workersRide-share company Lyft announced Thursday that it has plans to slash its total headcount by 13%, with approximately 683 workers being impacted.
Read more »
No, Dropbox ‘Hacker’ Hasn’t Stolen Passwords Or Data Of 700 Million UsersAs news breaks of Dropbox apparently falling victim to hackers in October, here's what actually happened.
Read more »
Ripple Gets 300 Million XRP from Anon Wallet, Locks 700 Million in Escrow.Ripple locks 700 million $XRP in escrow without releasing a billion XRP first. XRParmy
Read more »
No, Dropbox ‘Hacker’ Hasn’t Stolen Passwords Or Data Of 700 Million UsersAs news breaks of Dropbox apparently falling victim to hackers in October, here's what actually happened.
Read more »