The U.S. stock market saw its shares plummet from gains after the Federal Reserve (Fed) signaled a rate hike would happen faster than expected.
Meanwhile, sentiment of concern peaked as the Russia-Ukraine crisis continued to push oil prices to levels not recorded since 2014.
Major stock indices, the Dow Jones Industrial fell 0.38%, the S&P fell 0.15% while the Nasdaq Composite hit 0.02% after Fed chairman Jerome Powell announced a policy update suggesting the Fed would continue to raise interest rates.
The MSCI global equity index that tracks stocks of 45 other countries remained flat.
Among the essence of the Fed’s policy update was the proposed rate hike in March and the confirmation of plans to terminate the bond -buying program before launching a significant reduction in its asset holdings.
In addition, Powell also warned that inflation is a priority for the Fed and supply chain issues will continue.
As a result, investor sentiment began to cloud as the Fed is expected to prioritize anti -inflation plans over ensuring robust economic growth.
Treasury yields showed a surge shortly after the Fed update was released with 2 -year treasury yields reaching its highest level since February 2020 and the benchmark US 10 -year yield reaching 1.8709%.
The dollar index, which tracks a total of 6 other currencies, rose 0.58%, a 3 -week high.
Meanwhile, the ongoing Russia-Ukraine crisis has driven up oil prices amid concerns over supply disruptions that have seen net oil prices rise by US $ 90 a barrel for the first time since 2014.
Brent crude oil prices rose 1.55% at $ 89.57 a barrel and US crude oil prices added 1.65% at $ 87.01 a barrel.
The spot price of gold was down 1.64% at $ 1,817.31 an ounce.
