US stocks continued their losses Thursday as investors fear the Federal Reserve is hiking rates higher than previously thought.
The Nasdaq plunged as bond yields. Remarks from Fed Chair Jerome Powell on Wednesday, following the announcement of another 75-basis-point rate hike, flattened hopes for a pivot in the near term.
“Indicating that the Fed expects to extend its horizon for continuing to raise interest rates, Powell warns that the long slog will continue,” said David Donabedian, chief investment officer at CIBC Private Wealth. “Powell threw a wet blanket on investors hoping that the Fed would transition to the final phase of the tightening process. “
Investors are also looking ahead to the Labor Department’s monthly payroll report coming out early Friday. The consensus is for job gains to slow to 205,000.
Here’s where US indexes stood at the 4:30 p.m closing bell on Thursday:
- S&P 500: 3,719.87, down 1.06%
- Dow Jones Industrial Average: 32,001.25, down 0.46% (146.51 points)
- Nasdaq Composite: 10,342.94, down 1.73%
In commodities, bonds, and crypto:
- West Texas Intermediate crude fell 2.13% to $88.08 per barrel. Brent crude, the international benchmark, declined 1.47% to $94.74.
- Gold sluimped 0.18% to $1,631.74 per ounce.
- The 10-year Treasury yield soared 7.3 basis points to 4.136%.
- Bitcoin added 0.22% to $20,224.09.