Due to the possibility of continued rate hikes, the three main indices fell sharply. In the previous day, they collapsed on profit taking after signs of weakening global demand.
The main indices of Wall Street fell 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 elevated, and the process of bringing 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.
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%.
P7 – Jerome Powell (RE_opt.jpeg
Jerome Powell
The Dow Jones Industrial Average lost 0.3% to 33,951.52 units. Meanwhile, the S&P 500 fell 0.5% to 4,365.69 units, and the Nasdaq Composite fell 1.2% to 13,502.20 units.
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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