US stocks close lower after Powell hints at chances of recession
• The benchmark 10-year Treasury yield dropped by 14.9 basis points to 3.155%
US stocks closed lower on Wednesday, with the major benchmark indices erasing the gains made on Tuesday after the long weekend, after Fed Chair Jerome Powell reiterated his commitment to combating inflation through higher interest rates, but said a recession couldn’t be ruled out.
The Dow Jones Industrial Average dropped 47.12 points, or 0.2% to end at 30,483.13, after trading nearly 300 points higher. The Nasdaq Composite lost 16.22 points, or 0.2% to close at 11,053.08.
The S&P 500 shed 4.90 points, or 0.1% finishing at 3,759.89.
The yield on the benchmark 10-year Treasury note fell 14.9 basis points to 3.155%, the steepest daily decline since November 21.
Stocks were volatile after the rate hike decision but jumped to session highs last Wednesday, as Fed Chairman Jerome Powell said during his afternoon press conference that, “either a 50 basis point or a 75 basis point increase seems most likely at our next meeting.”
Market sentiment soured once again after central banks around the globe adopted more aggressive policy stances.
Market movers
Shares of Revlon Inc. (NYSE: REV) surged 34.3% Wednesday, continuing their recent “meme”-like rocket ride higher, with individual investors driving a buying frenzy in shares. Last week, the company voluntarily filed for bankruptcy.
Shares of Athira Pharma Inc. (NYSE: ATHA) slipped 66.3% Wednesday after the company said an exploratory Phase 2 study assessing its experimental treatment for patients with mild-to-moderate Alzheimer’s disease did not meet the primary endpoint.
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