Highlights
A hawkish shift from the Federal Reserve depressed stocks Wednesday as a more Fed officials see higher inflation and rate hikes from a bias rather than rate cuts and new Fed Chair Kevin Warsh stressed that the Fed's priority would be delivering price stability.
The Dow Jones industrial average fell 1.0 percent while the S&P 500 lost 1.2 percent and the Nasdaq was off 1.3 percent. Bond yields and the dollar rose in response to the Fed news while oil prices edged down as the US and Iran unveiled their latest plan to end fighting and open the Strait of Hormuz.
The end to the market's long-held rate cut hopes spurred losses across the board. Worst performers included materials, financials, consumer discretionary, communications services, consumer staples, real estate and health care.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.