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Your Evening Briefing: Stock Rally Fizzles After Fed Officials Speak

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First Day Of Trading On Floor Of NYSE In 2023
Photographer: Michael Nagle/Bloomberg

A rally in stocks fizzled after two US Federal Reserve officials signaled that interest rates could top 5%, throwing some cold water on traders who were envisioning a peak below that mark. The S&P 500 failed to stay above the key 3,900 level, erasing an advance that reached almost 1.5% earlier in the session. The Dow Jones Industrial Average underperformed while the Nasdaq 100 remained higher with Tesla surging by about 6%. Fed Bank of San Francisco President Mary Daly said she expects the central bank to raise rates to somewhere over 5% while her Atlanta counterpart Raphael Bostic noted that policymakers should hike above 5% by early in the second quarter, and then go on hold for “a long time.” Here’s your markets wrap

After weeks of stories foretelling the cuts, Goldman Sachs is embarking on one of its biggest rounds of firings ever as it locks in on a plan to terminate about 3,200 positions this week, with the bank’s leadership going deeper than rivals to jettison employees.