US stocks retreat with focus on Powell, ECB; Dow drops 200 points
The Dow Jones Industrial Average shed 227 points, or 0.72%. The S&P 500 fell 0.77%, and the Nasdaq Composite declined 0.92%.
By Reuters | Updated:
AP
US stock indexes opened lower on Thursday, as investors fretted about the pace of monetary policy tightening after Federal Reserve chair Jerome Powell said the central bank is "strongly committed" to controlling inflation.
The Dow Jones Industrial Average shed 227 points, or 0.72%. The S&P 500 fell 0.77%, and the Nasdaq Composite declined 0.92%.
The European Central Bank raised its key interest rates by an unprecedented 75 basis points and signalled further hikes, prioritising the fight against inflation even as the bloc's economy is heading for a likely winter recession.
Meanwhile, Federal Reserve Chair Jerome Powell said that the central bank Fed must act “forthrightly” on inflation.
“History cautions strongly against prematurely loosening policy,” he added. So far, long-term inflation expectations remain stable, but Powell suggested that that’s not a given. “What we hope to achieve is a period of growth below trend,” which will cause the labor market to get back into better balance, he noted.
The Dow Jones Industrial Average shed 227 points, or 0.72%. The S&P 500 fell 0.77%, and the Nasdaq Composite declined 0.92%.
The European Central Bank raised its key interest rates by an unprecedented 75 basis points and signalled further hikes, prioritising the fight against inflation even as the bloc's economy is heading for a likely winter recession.
Meanwhile, Federal Reserve Chair Jerome Powell said that the central bank Fed must act “forthrightly” on inflation.
“History cautions strongly against prematurely loosening policy,” he added. So far, long-term inflation expectations remain stable, but Powell suggested that that’s not a given. “What we hope to achieve is a period of growth below trend,” which will cause the labor market to get back into better balance, he noted.
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