Wall Street’s main indexes fell on Monday, amid concerns over the Federal Reserve’s plan to continue raising interest rates in its fight against inflation, even at the cost of an economic slowdown.
U.S. Federal Reserve Chair Jerome Powell said on Friday that the U.S. economy will need tight monetary policy “for some time” before inflation comes under control, which has sent major Wall indexes down. Street by more than 3% at the time.
Powell’s blunt and bigoted inflation comments undermined hopes the Fed could resort to modest rate hikes after recent data suggested price pressures were easing.
Tech giants and growth stocks such as Apple Inc, Microsoft Corp and Tesla Inc, which were down between 0.6% and 1.3% in early trading, were hit by rising US sovereign bond yields.
The two-year Treasury yield, which is particularly sensitive to yield expectations, briefly touched a 15-year high, while the part of the yield curve that measures the difference between two-year and 10-year rates remained heavily inverted.
A reversal is seen by many as a reliable sign of impending recession.
At 10:52 am (GMT), the S&P 500 index was down 0.45% to 4,039.27 points, while the Dow Jones was down 0.63% to 32,081.52 points. The Nasdaq Composite technology index fell 0.28% to 12,107.14 points.
Source: CNN Brasil
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