USA stocks are falling after Powell’s policy outlook Bearish Market

USA stocks fell on interest rate concerns after Federal Reserve Chairman Jerome Powell’s harsh testimony before Congress this week.

As of 10:36 ET (14:36 ​​GMT), it was down 184 points, or 0.5%, while down 0.7% and down 0.9%.

Powell, who has appeared in the House and Senate for his semiannual testimony on the economy, said more rate hikes are likely in the coming months even though he stalled on another rate hike last week.

USA, Stocks are falling today after Federal Reserve Chairman Jerome Powell signaled that the central bank is prepared to take more aggressive action to combat inflation.

The S&P 500 was down 1.5% at midday, while the Dow Jones Industrial Average was down 1.7% and the Nasdaq Composite was down 1.3%.

Powell’s comments at a hearing before the Senate Banking Committee on Wednesday suggested that the Fed is willing to raise interest rates by more than 0.75 percentage points at its next meeting in July. This would be the largest single rate hike since 1994.

The prospect of more aggressive rate hikes has sent investors into a sell-off, as they fear that higher rates will slow economic growth and lead to a recession. The S&P 500 is now in a bear market, meaning that it has fallen by more than 20% from its recent highs.

Investors are also concerned about the impact of rising inflation on corporate earnings. Many companies have warned that they will have to raise prices in order to offset the rising cost of doing business. This could lead to a slowdown in consumer spending, which would further hurt economic growth.

The outlook for the US stock market is uncertain in the near term. The Fed is likely to continue to raise interest rates in an effort to combat inflation, but this could lead to a recession. Investors will need to weigh the risks and rewards of investing in stocks in the coming months.

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