The main indices of Wall Street they fall this Wednesday because the president of the Federal Reserve, Jerome Powellremains firm in bringing inflation back to the 2% target, fueling fears of further monetary tightening.
“Inflationary pressures remain high, and the process of getting inflation back to 2% has a long way to go,” Powell said in his remarks ahead of his appearance before the House Financial Services Committee at 1400 GMT.
Markets continue to expect only a 25 basis point rate hike in July from the US central bank for the rest of the year, according to CMEGroup’s Fedwatch tool. Mega-cap companies struggled higher as 2-year Treasury yields, which move in line with interest rate expectations, rose marginally on Powell’s comments.
All subsectors of the S&P 500 fell, with the rate-sensitive real estate sector leading the declines, down 0.8%.
The Dow Jones Industrial Average was down 81.74 points, or 0.24%, at 33,972.13. Meanwhile, the S&P 500 was down 18.76 points, or 0.47%, at 4,368.30, and the Nasdaq Composite was down 126.95 points, or 0.93%, at 13,540.43.
In the previous session, Wall Street’s main indexes fell as investors took profits after a sustained rise in the market amid signs of weakening global demand.he. Even so, the benchmark S&P 500 index is up about 14% year-to-date.
Source: Ambito
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