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Stocks Halt Rally as Bond Yields Spike After Fed: Markets Wrap

  • Fed Chair Jerome Powell backs March interest-rate hike
  • Balance-sheet reduction to commence after liftoff begins
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Fed's Powell Says Rate Hike Will ‘Soon Be Appropriate'Source: Bloomberg
Updated on

Stocks erased gains and bond yields spiked after Jerome Powell signaled the Federal Reserve will steadily unwind its pandemic-era stimulus as it fights elevated inflation. 

The S&P 500 posted a back-to-back drop after rallying more than 2% earlier in the day. Meantime, the dollar climbed to a one-month high and 10-year Treasury yields approached 1.9%. In late trading, an $183 billion exchange-traded fund tracking the Nasdaq 100 whipsawed after Tesla Inc. said supply-chain troubles will limit production into 2022, while Intel Corp. gave a disappointing profit forecast.