Tech stocks lead indexes lower on Wall Street; eyes on Fed

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Stocks fell in morning trading on Wall Street and bond yields rose as investors try to estimate how quickly the Federal Reserve will raise interest rates and take other steps to fight inflation.

The S&P 500 was 1.3% lower in morning trading. Investors are waiting for the release of the minutes from the Fed’s last policy meeting, which could shed more light on how drastically the central bank will reverse measures meant to keep long-term rates low. A day earlier, Fed Governor Lael Brainard said that process could start as soon as May and at a rapid pace.

Bond yields rose sharply again. The yield on the 10-year Treasury jumped to 2.61% from 2.54%. The yield, which is used to set interest rates on mortgages and many other kinds of loans, is the highest it's been in three years. Crude oil prices were relatively stable Wednesday, but are up roughly 35% for the year. That has pushed gasoline prices higher, putting more stress on shipping costs, prices for goods and consumers' wallets.

European governments have resisted appeals to boycott Russian gas, Putin's biggest export earner, due to the possible impact on their economies.Technology companies has some of the biggest losses, which weighed heavily on the broader market. Apple fell 2.7% and Microsoft shed 3.4%.

 

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