The S&P 500 dropped 62 points, or 1.5%, to 3,986 on Tuesday, and the Dow Jones Industrial Average gave back 575 points, or 1.7%, to close at 32,856. Both had been nearly flat just before Fed Chair Jerome Powell said the central bank is ready to get more aggressive on rate hikes if warranted. The tech-heavy Nasdaq tumbled 1.3%
That would be a sharp turnaround after it had just slowed its pace of increases to 0.25 percentage points last month from earlier rate hikes of 0.50 and 0.75 points. Wall Street had already been convincing itself that higher rates than earlier thought were on the way and that the Fed may even possibly go back to larger rate increases following last month's data reports.
The two-year Treasury yield, which moves more on expectations for the Fed, shot up to 5.01% from 4.87% and is near its highest level since 2007.Traders now see a roughly two-in-three chance the Fed will accelerate its rate hikes and raise by 0.50 percentage points on March 22. That's a flip-flop from a day earlier, when they were betting the Fed would stick with the smaller increase of 0.25 points, according to data from CME Group.
Waunahavefun old enough to remember how he caved to the 🍊bully 🤡 and also those super high rates under “genius” reagan
HillBeverlyhill If you have at least $500 in extra money, put it in a Marcus savings account. You’ll make some money from the high interest rates. (And no, I don’t work for Marcus. I found them online and am enjoying the 3.75% interest on the money I put in.)
If inflation 2% and unemployment 4% the fed will increase rates. There’s no mystery about what they are going to do. It’s been written down for decades.
All being done on purpose. Those thinking of retirement, will have to keep working.
Man Biden has the golden touch. Creates record level inflation, tanks the stock markets and 401k’s and now sky high interest rates. Oh and ran up 6 trillion in new debt in two years.
I was about to lock in a long-ish CD. Guess I better wait a bit.
Why does a higher interest rate cause corporations to stop over charging ppl?
Who cares!?!? Just those privileged people losing more money
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