Please try another search
© Reuters.
By Yasin Ebrahim
Investing.com – The S&P 500 fell Wednesday amid sharp rise in U.S. bond yields after the Federal Reserve delivered a hawkish surprised, signaling two interest rates hikes by the end of 2023.
The S&P 500 fell 0.61%, and the Dow Jones Industrial Average was down 0.59%, or 201 points, and the Nasdaq Composite was down 0.08%.
The Federal Reserve kept interest rates and monthly bond buying steady, though signaled that it could hike rates sooner than previously expected.
The Fed hiked its interest-rate outlook in 2023 to 0.6% from previous projections of 0.1% in March, signaling two 0.25% rate hikes in 2023, the Fed’s Summary of Economic Projections showed. The central bank also raised its economic growth and inflation forecasts.
Treasury yields jumped sharply on the news as investors sold bonds in expectations of rising rates.
Growth sectors of the market like tech, which typically boasts higher valuation that are unattractive in a rising rate environment, pared some of their post-Fed losses.
Google-parent Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN) and Facebook (NASDAQ:FB) were mixed.
Oracle (NYSE:ORCL), meanwhile fell 5% after its softer second-quarter guidance offset first-quarter results that beat on both the top and bottom lines.
Cyclicals, which tend to move in tandem with an improving economy, were also lower, though financials were higher as bank stocks were boosted by rising rates.
Energy stocks were lower as oil prices pared some of their recent gains, though remained close to October 2018 highs, as weekly U.S. crude stockpiles fell more than expected.
Crude oil inventories fell 7.355 million barrels last week, compared with analysts' expectations for a draw of 3.29 million barrels.
In other news, Roblox (NYSE:RBLX) slumped 7% on signs the reopening is denting demand for gaming. The video game platform reported 43 million daily active users for May, up 28% compared to a year earlier but down from 43.3 million in April.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.