US stocks continue sell-off after Fed Chair Jerome Powell signals rates may peak at a higher level than expected

us-stocks-continue-sell-off-after-fed-chair-jerome-powell-signals-rates-may-peak-at-a-higher-level-than-expected

Brian Evans

Getty Images US stocks opened lower Thursday as the sell-off from a day earlier continued.  The US dollar and bond yields both gained with investors seeking cover.  On Wednesday, Fed chief Jerome Powell squashed hopes of a policy pivot following another jumbo rate hike.  Loading Something is loading.

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US stocks fell Thursday, with investors still digesting hawkish rhetoric from Federal Reserve Chairman Jerome Powell a day earlier.

The central bank’s fourth consecutive 75-basis-point rate hike on Wednesday was widely anticipated, but Powell said it’s still too early to pivot while and inflation remains persistent. 

“The key takeaway is that there may be slower rate hikes in the future, but these may be higher than previously anticipated,” said Jamie Dutta, market analyst at Vantage. “For the Fed, it is now about the destination, not the journey. For markets, it is how long the FOMC raise rates in restrictive territory and into 2023.”

Elsewhere, the Bank of England hiked benchmark interest rates by 75 basis points Thursday, dragging down gilts and the pound sterling. Both the dollar and bond yields gained. 

Here’s where US indexes stood at the 930 a.m. opening bell on Thursday: 

 S&P 500: 3,720.74, down 1.04%Dow Jones Industrial Average: 31,934.54, down 0.66% (213.22 points)Nasdaq Composite: 10,413.61, down 1.06% Here’s what else is happening today:

Here are the top takeaways from Fed chair Powell’s comments yesterday on the path for future rate hikes. Apple’s market capitalization climbed to $2.307 trillion and is now worth more than Alphabet, Amazon and Meta combined. China’s central banker governor said the yuan will be stable, while the Fed’s latest rate hike sent the currency near a 15-year low.In commodities, bonds, and crypto:

West Texas Intermediate crude fell 1.56% to $88.57 per barrel. Brent crude, the international benchmark, rose 1.22% to $94.97.Gold declined 1.06% to $1,617.59 per ounce. The 10-year Treasury yield jumped 14.9 basis points to 4.21%.Bitcoin inched up 0.02% to $20,125.09.  Read next

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