U.S. stocks close mixed as Powell warns of more rate hikes

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U.S. stocks ended mixed on Wednesday as Federal Reserve Chairman Jerome Powell reiterated that the U.S. central bank is likely to raise interest rates again. | ManilaBulletin

The Dow Jones Industrial Average fell 74.08 points, or 0.22 percent, to 33,852.66. The S&P 500 lost 1.55 points, or 0.04 percent, to 4,376.86. The Nasdaq Composite Index increased by 36.08 points, or 0.27 percent, to 13,591.75.

U.S. stocks were mostly trading lower as investors digested the latest commentary on the future monetary policy from Powell. Speaking before a panel in Portugal on Wednesday, the Fed chair said a "strong majority" of Fed policy makers were looking for raising interest rates twice more this year. Powell and his European counterparts all saw more monetary tightening ahead and reiterated that they had a long way to go in reining in high inflation.

While global central bankers were striking a hawkish tone, the Nasdaq Composite still bucked the trend on Wednesday and closed higher for a second day. Google-parent Alphabet advanced more than 1.5 percent, while Tesla and Netflix both jumped more than 2 percent. Chip stocks fell as the United States was reportedly considering new export restrictions.

 

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