Stocks fall, yields rise after Fed signals rate hike ‘soon’

The Wall St. street sign is framed by the American flags flying outside the New York Stock exchange, Friday, Jan. 14, 2022, in the Financial District. Stocks are opening with solid gains on Wall Street Wednesday, Jan. 26, led by technology stocks after Microsoft reported standout results for its latest quarter.

Stocks fell, giving up their gains from an early rally, and Treasury yields climbed Wednesday as investors weighed the Federal Reserve’s decision to leave its key interest rate unchanged, while signaling that it plans to begin raising interest rates “soon” as the central bank moves to fight inflation.

[Most read] Amy Schneider’s historic ‘Jeopardy!’ winning streak ends with loss to Chicago librarian Rhone TalsmaStock indexes initially rose, then eased back to just below where they were before the Fed’s statement was released at 2:00 p.m. ET., then flipped into the red as Fed Chair Jerome Powell took repeated questions about how and when the central bank will start letting its balance sheet shrink after buying trillions of dollars of bonds through the pandemic.

The market had been solidly higher prior to the release of the Fed statement, a turnaround following several days of volatile swings as investors try to gauge whether the Fed will succeed in its new effort to fight inflation. The central bank had been widely expected to continue drawing back its stimulus measures ahead of raising interest rates in the coming months.

For nearly two years, investors had poured money into stocks, confident that the Federal Reserve would help keep share prices upright. With that support going away, markets have been hit with a bout of volatility. The S&P 500 is down 9.5% so far this year. The 11 sectors in the S&P 500 turned lower, with communication, health care and industrial stocks weighing down the index the most.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

BREAKING: Bitcoin Spikes to Intraday High as Fed Leaves Rates Unchanged⬆ +14 BREAKING: Bitcoin Spikes to Intraday High as Fed Leaves Rates Unchanged $BTC bitcoin cryptocurrency
Source: CryptoPanicCom - 🏆 563. / 51 Read more »

BREAKING: Bitcoin Spikes to Intraday High as Fed Leaves Rates UnchangedThe Fed has signaled that the first rate hike will take place in March
Source: Utoday_en - 🏆 295. / 63 Read more »

Dow gives up 500-point gain and trades lower as Fed signals rate hikes ahead to fight inflationU.S. stocks fell in volatile trading Wednesday in the wake of the Fed's interest rate decision. What’s pretty clear is that unscrupulous WS hedge funds are manipulating the crap out of this market I know we all probably might have heard about Bitcoin but don't know how it works, I tried it in a week ago by a man who recommended me to Derrick_Jones39 on Twitter he guides me through and i made a return of $10500 after a week of trading, connect with him
Source: CNBC - 🏆 12. / 72 Read more »

Forex Today: US Stocks Gyrate Again Ahead of FOMCGlobal Stocks Falling Again After Yesterday\u2019s Rebound; FOMC Expected to Signal March Hike Policy; Bitcoin\u2019s Recovery Continues
Source: Daily_Forex - 🏆 567. / 51 Read more »

Fed Keeps Interest Rates at Zero, Says Hike Appropriate ‘Soon’The Fed leaves rates unchanged but says interest rates could rise soon 'with inflation well above 2 percent.' Bitcoin was up 2.5% after the decision. HeleneBraunn reports HeleneBraunn Mind boggling. Rates have to go up, stop delaying. HeleneBraunn $UMB ☂️🚀 lets go $100 🚀☂️ HeleneBraunn Reporting good news for btc now. The pump after the institutions dump. So transparent.
Source: CoinDesk - 🏆 291. / 63 Read more »

Federal Reserve likely to signal March interest rate hike this weekThe Federal Reserve is expected to confirm plans this week for an interest rate hike for March as officials look to address the decades-high inflation hammering American consumers.
Source: nypost - 🏆 91. / 67 Read more »