(News Bulletin 247) – The New York Stock Exchange ended at half mast on Wednesday, as investors did not appreciate Jerome Powell’s unaccommodating tone before Congress: the Dow Jones thus fell by 0.3% to 33,951 points and the Nasdaq Composite dropped 1.2% to 13,502 points.
Investors clearly did not consider the latest statements by the Federal Reserve Chairman to be timely, indicating that further rate hikes were to be expected this year.
‘Almost all the members of the monetary policy committee (FOMC) believe that it will be necessary to raise interest rates a little more by the end of the year,’ he declared before the parliamentarians.
Investors also didn’t like his statement that there was ‘still a long way to go’ to bring inflation back below the 2% target, raising fears of a hard landing for the economy American.
On the value front, Tesla fell 5.5% in the wake of a downgrade from Barclays, which said the stock’s recent rally overlooked many near-term uncertainties.
Intel dropped 6%, amid an agreement to sell a roughly 20% stake in its IMS Nanofabrication GmbH business to Bain Capital, in a deal that values IMS at around $4.3 billion of dollars.
Dollar Tree, on the other hand, rose 4.6%, as the food retailer posted a target of generating EPS of $10 or more for its 2026 financial year, as well as “producing significant cash available for shareholders”.
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