Stocks Sink Into US Close With Hawkish Fed Chorus: Markets Wrap
- Powell said interest rates likely staying high for some time
- He added that the September decision will hinge on data
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Stocks tumbled as Jerome Powell gave a clear message that rates will likely stay high for some time, throwing cold water on the idea of a Federal Reserve pivot that could jeopardize its war against inflation.
The rout deepened in afternoon New York trading, with the S&P 500 seeing its worst day since mid-June and the Nasdaq 100 tumbling over 4%. Major equity indexes dipped below their 100-day price averages, indicating the potential for more losses, according to some traders. Treasury two-year yields -- which are more sensitive to imminent policy moves -- rose alongside the dollar.