Global stocks fell on Thursday after the Federal Reserve signaled it would start hiking interest rates at its March meeting.
The futures on the S&P 500, and the futures on the Dow Jones dipped as of 4:10 a.m. There is a lower start for US indices later in the day.
The US central bank said in its policy update that it would be appropriate to raise interest rates and that it would end bond-buying in March. Analysts said this is a sign that the economy is ready for a change.
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The yield on the 10-year Treasury note was little changed after the Fed's statement. The narrative about inflation and tighter rate policy gains immediately after the press conference. This happened in a negative turn in rates and equities.
The yield on the 10-year Treasury note was close to its highest in two years.
Anthony Denier, CEO of trading platform Webull, said that the Fed's announcement was mostly expected, however it still seemed to shock the market and cause its early rally to wither.
Powell warned during the conference that high inflation is more persistent than expected and that inflation remains above the Fed's goal.
Chris Weston, Pepperstone's head of research, said that Powell made a point that this time was different from previous periods of tightening and that there was a tone in Powell's voice that was new.
Powell did not make any commitments about the start of the balance sheet run-off or the expected pace. He admitted that a rate-hike at every meeting this year was still on the table.
Despite beating analyst expectations,Tesla stock dropped in after-hours trading. The company's electric vehicles could be constrained by continued supply chain issues.
After the Fed meeting, Europe's equities were either down or sideways.
The Euro Stoxx 600 fell while the DAX lost. The FTSE 100 in London was not much changed.
Chinese blue-chips fell to their lowest level in over a year, as Asian equities plunged to their lowest in nearly 15 months.
The Hang Seng in Hong Kong fell 2.5%. The Tokyo stock market declined 3%.
After briefly rising to $90 a barrel for the first time in over two years, the price of crude retreated.
In addition to hopes of a return to more normal levels of mobility this year following the Pandemic, growing tensions between Russia and the West have also supported prices recently.
West Texas Intermediate futures fell to $87.08 a barrel.
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