For fear of rising interest rates, Wall Street increases its losses

US stock indices fell on Monday on concern over the Federal Reserve’s plan to keep raising interest rates as it fights inflation, even at the cost of an economic slowdown.

The Dow Jones Industrial Average fell 265.07 points, or 0.82%, to 32,018.33 points; the S&P 500 was down 29.87 points, or 0.74%, at 4,027.79, and the Nasdaq Composite was down 82.76 points, or 0.68%, at 12,058.95.

On Friday, Fed Chairman Jerome Powell said the US economy would need tight monetary policy “for some time” before inflation is under control, sending Wall Street’s main indices down more than 3%. .

Powell’s blunt and hawkish comments dampened hopes the central bank would resort to modest rate hikes after the latest data suggested price pressures were easing.

In early trading, hit by rising US Treasury yields, heavyweight growth and technology stocks such as Apple Inc, Microsoft Corp and Tesla Inc were down between 0.6% and 1.3% %.

while the yield curve that measures the difference between 2-year and 10-year debt remained heavily inverted, the yield on the 2-year US Treasury note, which is especially sensitive to interest rate expectations, briefly peaked 15 years old.

A reversal is a reliable signal of an impending recession. The CBOE volatility index, Wall Street’s gauge of fear, hit a seven-week high of 27.03 points.

Energy stocks rose 0.7%, following a more than 1% rise in oil prices, as potential OPEC+ production cuts and the conflict in Libya helped offset US dollar strength. Posted by Iraic.info, a news and information agency.