The yield on two-year U.S. Treasury notes rose to almost a 15-year high as investors prepared for the likelihood of another rate hike from the Fed.
At the end of a two-day policy meeting, the Fed is expected to make a decision. Rate futures traders expect a 75 basis point hike and a 100 basis point tightening.
Monetary policy meetings are held by Britain, Norway, Switzerland and Japan.
On Tuesday, Sweden's central bank raised interest rates by a larger-than- expected full percentage point and warned of more to come.
The U.S. two-year note hit a high of 3.992% on Tuesday. It was the last time it broke 4%.
The 10-year Treasury's yield shot up to 3.604%, before paring some gains. After topping 3.5% for the first time in 11 years, they were up 8 basis points.
The Fed and other banks are trying to tackle inflation, but investors are concerned about the impact of higher rates on the global economy.
New bets were not made on Wall Street.
Jake Dollarhide said that investors were just selling the Fed. We are getting all of the bad back. The people are not optimistic.
Ford Motor Company's shares sank after it was reported that inflation-related supplier costs will be $1 billion higher than expected.
The S&P 500 lost 43.98 points, or 1.13%, to 3,855.93, while the Nasdaq dropped109.97 points, or 0.95%, to 11,425.
The pan- European STOXX 600 index lost 1.05% and the gauge of stocks across the globe lost 0.85%.
The dollar rose, trading near a two-decade high, as investors continued to hold out hope for another aggressive rate hike by the Fed.
The dollar index was on track for a fifth week of gains. This month was the first time in over a decade that it reached the century mark.
The dollar is behaving like a force of nature, so traders and investors are taking cover.
The Swedish crown briefly spiked against the euro and dollar after the central bank hiked its rates.
The Bank of England and Swiss central bank are expected to raise their rates.
The central bank kept its benchmark lending rates unchanged on Tuesday.
The Bank of Japan has shown no sign of abandoning its ultra- easy yield curve policy despite a big slide in the Japanese currency.
The dollar was up against the japanese currency. It went as high as 144.99 on Sept. 7 for the first time in two decades.
The dollar remained strong as oil prices fell.
Brent crude futures settled down $1.38, or 1.5%, to $90.62 a barrel, while U.S. crude for October delivery ended at $84.45, down $1.28, on the day of its expiration. The more active November contract settled down $1.42 to $83.94 a barrel.
All Rights Reserved © 2024
