Tech stocks on edge as Powell stays on message - BNN Bloomberg

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U.S. stocks slid after a renewed warning from Federal Reserve Chair Jerome Powell that higher rates would be needed to combat inflation, thwarting bets that the U.S. central bank was nearing the end of its tightening cycle.

U.S. stocks slid after a renewed warning from Federal Reserve Chair Jerome Powell that higher rates would be needed to combat inflation, thwarting bets that the US central bank was nearing the end of its tightening cycle.

Policymakers kept interest rates unchanged at their meeting last week, their forecasts imply around two additional quarter-point rate hikes or one half-point increase. Since then, money markets have been attaching roughly 80 per cent odds to a quarter percentage point hike in July. “The positioning and the chasing is no longer likely to be the big tailwind that it was for the last six or seven weeks. That's why, things go parabolic, they don't do so in perpetuity,” Anastasia Amoroso, chief investment strategist at iCapital, told Bloomberg Television's The Open before Powell's speech on Wednesday.

If, “the 10-year starts to rise because all of the sudden the inflation expectations start to become more entrenched, that would certainty cause a problem for risk assets,” according to Amoroso.

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