A trader works on the floor of the New York Stock Exchange in New York City, U.S., February 17, 2023. REUTERS/Brendan McDermidMeta Platforms slips despite Facebook testing subscriptionsIndexes down: Dow 1.92%, S&P 1.93%, Nasdaq 2.28%
Feb 21 - The Wall Street benchmark indexes tumbled on Tuesday, weighed by megacap names, after data showing a rebound in business activity in February stoked fears that the U.S. Federal Reserve might need to hike interest rates by more than expected to control inflation. The S&P Global Purchasing Manufacturer's index showed that business activity in the United States rebounded to its highest level in eight months in February to 50.2 from 46.8 in January, buoyed by a robust services sector, according to aThe report adds to a recent slew of economic data which has painted a picture of a resilient economy, which continues to perform against a backdrop of multiple rate-rises by the central bank in 2022 aimed at tamping down inflation.
With inflation still far from the Fed's 2% target, and the economy retaining much of its vigor, money market participants have been revising upwards where they see the Fed fund rates peaking - currently at 5.35% in July and staying near those levels throughout the year.