U.S. stocks dip following Powell remarks as benchmark Treasury yields near 5%

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NEW YORK, Oct 19 - Wall Street faltered and 10-year U.S. Treasury yields reached a 16-year high after U.S. Federal Reserve Chairman Jerome Powell said that additional rate hikes could be warranted in view of economic resiliency and labor market tightness.

"Powell's comments today indicated that there's more to be done," Stovall added. The Fed"won't start to cut rates until the beginning of the second half of next year at the earliest." Third-quarter reporting season has hit full stride. A mixed bag of earnings from high-profile companies such as Tesla Inc and Netflix Inc has sent market participants in search of an emerging common theme.

The Dow Jones Industrial Average fell 190.23 points, or 0.57%, to 33,474.85, the S&P 500 lost 32.03 points, or 0.74%, to 4,282.57, and the Nasdaq Composite dropped 115.51 points, or 0.87%, to 13,198.79. Emerging market stocks lost 1.23%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.48% lower, while Japan's Nikkei lost 1.91%.

 

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