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Wall St Drops as Fed Officials Mull U.S. Rate Hikes in 2023

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Indexes down Dow 0.61, SP 500 0.40, Nasdaq 0.27 New throughout, adds market reaction to Fed statement

June 16 Reuters All three main Wall Street indexes fell on Wednesday afternoon, as investors digested news from the Federal Reserve that it expects the first postpandemic interest rate hikes to be sooner than forecast.

New projections saw most of 11 of 18 U.S. central bank officials pencil in at least two quarterpercentagepoint rate increases for 2023, even as officials pledged in a statement to keep policy supportive for now to encourage a jobs recovery.

U.S. Treasury yields also rose on the news, with the benchmark 10year yield at its highest level in a week. The U.S. dollar also rose, with the dollar index, which tracks the greenback versus a basket of six currencies, hitting its highest level since May 6.

By 313 p.m. ET 1913 GMT, the Dow Jones Industrial Average fell 208.69 points, or 0.61, to 34,090.64, the SP 500 lost 17.17 points, or 0.40, to 4,229.42 and the Nasdaq Composite dropped 38.33 points, or 0.27, to 14,034.52.

Reporting by Shashank Nayar and Medha Singh in Bengaluru and David French in New York; Editing by David Gregorio, Marguerita Choy and Matthew Lewis

Source Reuters

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