Stocks varied following Fed inflation warnings
Stocks were mixed this morning after Federal Reserve Chair Jerome Powell made comments Wednesday that indicated inflation still isn’t under control, the Associated Press reports.
On Wall Street, declines in technology stocks left benchmarks mixed and sapped more momentum from a five-week rally. The S&P 500 fell 0.5% to 4,365.69. It was a third straight pullback for the index after it rallied last week to its highest level in more than a year.
Weakness for high-growth stocks hit the Nasdaq composite in particular, and it fell 1.2% to 13,502.20. Still, roughly as many stocks rose as fell on Wall Street, and the Dow Jones Industrial Average dropped by a milder 0.3% to 33,951.52.
In energy trading this morning, benchmark U.S. crude fell 20 cents to $72.33 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, lost 21 cents to $76.91 per barrel.
In currency trading, the U.S. dollar dipped to 141.71 Japanese yen from 141.81 yen. The euro cost $1.0992, little changed from $1.0990.
Wall Street had been on a tear this year, with the S&P 500 up nearly 14% amid hopes that inflation is coming down quickly enough for the Federal Reserve to stop hiking interest rates soon. That would take pressure off the economy and could allow it to avoid a recession. Some analysts say the rally ran too far, too fast while inflation has remained stubbornly high, which could force the Fed to keep rates higher for longer.