US stocks end mixed as Powell warns of further rate hikes

NEW YORK, June 28 (Xinhua) – US stocks finished mixed on Wednesday as Federal Reserve Chairman Jerome Powell reiterated that the US central bank is likely to raise rates again.

The Dow Jones Industrial Average fell 74.08 points, or 0.22%, to $33,852.66. The S&P 500 fell 1.55 points, or 0.04%, to 4376.86. The Nasdaq Composite Index rose 36.08 points, or 0.27%, to 13,591.75.

Seven of the S&P 500’s 11 major sectors finished in the red, with utilities and materials leading the laggards, down 1.48% and 0.68%, respectively. On the other hand, energy and telecommunications services led the increase rate, rising 1.02% and 0.80%, respectively.

U.S. stocks largely fell as investors digested Powell’s latest comments on future monetary policy. Speaking at a panel discussion in Portugal on Wednesday, he said a “strong majority” of Fed policymakers were looking for two more rate hikes this year.

When Chairman Powell attended with officials from the European Central Bank, he said, “The policy is restrictive, but it may not be restrictive enough, and it wasn’t restrictive enough for a period of time.” mentioned the possibility.

Powell and European prime ministers both said they expect more monetary tightening in the coming years, reiterating that they have a long way to go to curb high inflation.

“Our economists are calling for another 25 basis points hike at the Fed meeting in July, followed by a pause until the end of the first quarter of next year. We’re also calling for a continued slowdown,” we’ve seen in the last 15 months or so,” said Vichy Tirupatul, chief fixed income strategist at Morgan Stanley.

While global central bankers have taken a hawkish stance, the Nasdaq Composite Index continued to buck the trend on Wednesday, closing higher for a second day in a row. Google parent Alphabet rose more than 1.5%, while Tesla and Netflix both rose more than 2%. Chip stocks plunged after reports that the United States was considering new export controls.

“While the prospect of tighter controls isn’t surprising, the headline suggests that there are downside risks to AI (artificial intelligence) stocks as well, and that a more balanced view of the sector is likely going forward for investors. We take it as a reminder that it can be useful to the public,” according to an analysis released Wednesday by UBS Global Wealth Management.

Investors are also keeping an eye on the latest economic data. The U.S. Census Bureau said Wednesday that the country’s trade deficit fell to $91.1 billion in May, 6% from a six-month high of $97.1 billion in April, as lower oil prices and weaker consumer demand pushed it down. reported a decrease. economic slowdown.