Stocks ended lower as market sentiment swung between bargain hunting and rate hike worries. The U.S. dollar and Treasury yields advanced to new multi-year highs. Crude oil erased all the gains in 2022 after surging as high as $120 a barrel in early March.
U.S. Treasury yields continued to advance to new 15-year highs and the dollar jumped to a two-decade high against major currencies. The British pound dropped to a new 4-decade low.
Rates are rising and economies are slowing around the world and investors recalibrate earnings outlook and readjust valuations. Energy sector led the losers as crude oil dropped more than 5%.
Major averages on Wall Street extended losses on the fourth day and are set to close down for the second week in a row. Crude oil and natural gas prices eased on recession worries and the U.S. dollar advanced to a new 2-year high.
Stocks fell on the worries that high inflation is still ruling the economy after five rate hikes over six months and more hikes may just dip the economy to a recession without breaking the back of inflation.
Switzerland stepped out of the negative rate regime after inflation jumped to 3-decade high last month. Norway indicated future rates are likely to be moderate. The UK rates are still lagging by a wide margin to consumer price inflation.
Stocks on Wall Street accelerated declines as investors digest the implications of recent large rate hikes and future rate paths. The Fed reiterated its commitment to bring down inflation but six months of monetary tightening is having a minimal impact on inflation.
The Federal Reserve lifted rates by a large amount for the third time in a row, sharply lowered its 2022 growth outlook and revised higher unemployment rate estimate. The interest rates are likely to go up by least another 125 basis points by the end of 2022.
The Federal Reserve increased the key lending rate by 75 basis points for third time in a row and revised the fed funds target range between 3% and 3.25%. The Fed held out for more ongoing rate increases in the target range.
Stocks on Wall Street traded higher with all eyes on Fed's rate decision and comments on future rate paths. Fed is not only battling sky-high inflation but also its diminished credibility in tackling rapid price increases.
Treasury yields rise ahead of the Fed's rate-hike decision on Wednesday. and investors seek a deeper understanding of the future rate path and inner workings of the economy.
Oxford, the parent of Tommy Bahama, lifted its annual earnings and sales outlook. Ford said costs are running ahead of expectation this quarter. A federal judge rejected Optum's plan to acquire Change Healthcare.
Stocks closed higher and the yield on 10-year Treasury notes closed at a 11-year high. The U.S. dollar advanced ahead of the interest rate decision on Wednesday.
