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

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


US stocks slumped on Wednesday as Federal Reserve Chair Jerome Powell indicated more interest rate hikes to tame inflation in the year ahead.

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. 

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Updated: 22 Jun 2023, 02:10 AM IST

Disclaimer: Along with publishing our own news, we get news from various sources namely from news wires ANI, PTI, other reputed finance portals and individual journalists. We are not legally liable for any inaccuracies in the news and expect the reader to do their own due diligence.

http://ganesh@finplay.in

Finance enthusiast, Mutual fund expert.




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