Global markets update: US stocks slump as Jerome Powell indicates more rate hikes

The S&P 500 fell 22.98 points, or 0.52%, at 4,365.73 points. The Dow Jones Industrial Average dropped 102.42 points, or 0.30%, at 33,952.64. The Nasdaq Composite lost 165.09 points, or 1.21%, at 13,502.20.

Powell, in his testimony before the US House Financial Services Committee, reiterated that the Fed remains “strongly committed to bringing inflation back down to our 2% goal.” 

Shares of Tesla dropped 5.5% and Microsoft 1.3%. Nvidia lost 1.7%. FedEx declined 2.5%.

Bond market

The yield on the 10-year treasury was steady at 3.72%. The two-year treasury yield rose to 4.71% from 4.69% late Tuesday.

Currencies

The US dollar rose to 141.80 Japanese yen from 141.37. The euro rose to $1.0984 from $1.0917.

Canada

Canada stocks fell on Wednesday on hopes for further interest rate hikes by the central bank.

The Toronto Stock Exchange’s S&P/TSX composite index ended down 48.19 points, or 0.2%, at 19,705.95.

Energy prices

Brent crude for August delivery rose $1.22 to $77.12 a barrel on Wednesday. US crude oil benchmarkfor August delivery rose $1.34 to $72.53 a barrel.

Natural gas for July delivery rose 11 cents to $2.60 per 1,000 cubic feet.

Europe

European shares edged lower on Wednesday, led by tech and real estate stocks.

The pan-European STOXX 600 index ended 0.5% lower.

Britain’s FTSE 100 fell 0.1% at 7,559.18. Germany’s DAX down 0.6% at 16,033.26. France’s CAC 40 fell 0.5% at 7,260.66.

Asia

In Asia, Hong Kong’s Hang Seng Index plunged 2% at 19,218.35. China’s Shanghai Composite down 1.3% at 3,197.90. Japan’s Nikkei 225 rose 0.6% at 33,575.14.

Australia’s S&P/ASX 200 index broke a 7-day gaining streak and closed 0.6% lower at 7,314.90. New Zealand’s benchmark S&P/NZX 50 index slid 0.1% at 11,776.25 points. 

Bullion

Gold for August delivery fell $2.80 to $1,944.90 an ounce. Silver for July delivery fell 42 cents to $22.81 an ounce. 

Updated: 22 Jun 2023, 02:10 AM IST