Fed Chairman Powell’s speech at the Jackson Hole annual meeting of global central banks shared a hawkish stance with many Fed officials recently. Powell warned against premature easing of monetary policy, saying that the decision to raise interest rates in September will Depending on the data, and at the same time pouring cold water on the market’s expectations that the Fed’s stance will turn from hawk to dove, U.S. stocks extended their intraday losses on Friday (26th).
Before the deadline, the Dow Jones Industrial Average fell nearly 550 points, or nearly 1.6%, to 32,751.22 points, the Nasdaq Composite fell more than 300 points, or nearly 2.5%, to 12,327.46 points, and the S&P 500 fell nearly 90 points or 2%, temporarily reported 4,114.14 points, the Philadelphia Semiconductor Index fell more than 100 points or nearly 3.5%, temporarily reported 2,866.69 points.
The Fed was expected to shift from an aggressive pace of rate hikes to a more moderate pace, but Powell’s comments today dampened those expectations. Market analysts said Powell’s remarks showed that inflation slowed in July not enough for the Fed to rule out another rate hike of 3 yards (75 basis points). The debate over whether to raise rates by 2 yards (50 basis points) or 3 yards will continue.
All major sectors of U.S. stocks were wiped out in early trading, with technology stocks, the main driver behind the U.S. stock market opening higher on Thursday, leading the decline. Google’s parent company Alphabet (GOOGL-US) fell more than 4% during the session, and its communications sector fell nearly 3%; the IT sector, where chip stocks are located, fell more than 2%, and NVIDIA (NVDA-US) fell nearly 6% and over Micro (AMD-US) fell nearly 4%, Qualcomm (QCOM-US) fell more than 3%; Amazon (AMZN-US), which belongs to the IT sector, fell nearly 3%, Microsoft (MSFT-US) fell more than 2%, Facebook The book’s parent company Meta (META-US) fell nearly 3%, and Apple (AAPL-US) fell nearly 2%. Tesla (TSLA-US) fell nearly 2%, and its consumer discretionary sector also fell more than 2%
In addition, the U.S. dollar index rose during the session, quickly regaining 108.57, away from the nearly one-week low of 107.725 in early trading, and the US 10 bond yield remained above 3% and is now at 3.035%.