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- US stocks opened lower on Wednesday, with investors processing comments from Jerome Powell.
- The Federal Reserve chair said Tuesday that benchmark rates will likely increase.
- On Wednesday, New York Fed President John Williams further echoed Powell’s remarks.
US stocks ticked down at the open on Wednesday, with investors reflecting worry over higher benchmark interest rates.
A day earlier, Federal Reserve Chair Jerome Powell cautioned that the strong jobs report from Friday could mean more rate hikes in the future beyond what the market has priced in. Still, he also reiterated that disinflation has already started.
On Wednesday, New York Fed President John Williams further echoed Powell’s remarks, warning that the labor remains strong and that policymakers still have more work to do on rate hikes while the outlook on inflation continues to be uncertain.
Here’s where US indexes stood at the 9:30 a.m. opening bell on Wednesday:
- S&P 500: 4,151.85, down 0.29%
- Dow Jones Industrial Average: 34,122.06, down 0.10% (34.63 points)
- Nasdaq Composite: 12,073.74, down 0.33%
Here’s what else is going on:
- Tesla CEO Elon Musk says “the future is bright” for his electric vehicle company.
- Former Coinbase employees pleaded guilty to insider trading charges.
- Crypto exchange Binance is thriving ever since rival firm FTX collapsed despite a recent sell-off in digital tokens.
In commodities, bonds, and crypto:
- Oil prices climbed, with West Texas Intermediate up 1.59% to $78.34 a barrel. Brent crude, the international benchmark, rose 1.24% to $84.73 a barrel.
- Gold gained 0.42% to $1,882.32 per ounce.
- The 10-year yield fell 1.9 basis points to 3.655%.
- Bitcoin dipped 0.09% to $23,097.86.