# Wall St flutters, Treasury yields ease as Powell resumes testimony
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-08
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Fed's Powell signals more rate hikes as stocks
Meta Description: U.S. stocks and Treasury yields wavered as economic data backed Powell's Fed rate hike statements, causing uncertainty in financial markets.
URL: https://financedigest.com/wall-st-flutters-treasury-yields-ease-as-powell-resumes-testimonyhtml

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By Stephen Culp

NEW YORK (Reuters) – U.S. [stocks struggled for direction and Treasury yields](https://www.financedigest.com/wall-street-stocks-power-higher-as-treasury-yields-and-dollar-ease.html "Wall Street stocks power higher as Treasury yields and dollar ease") wavered on Wednesday as a barrage of robust economic data appeared to support Federal Reserve Chairman Jerome Powell’s reassertion, in his second day of congressional testimony, that the central bank would continue to ratchet up policy rates until inflation subsides.

The major U.S. stock indexes oscillated between modest gains and losses in a subdued session, and the dollar paused its advance the day after a broad sell-off in the equities [market driven by Powell’s](https://www.financedigest.com/jittery-markets-attempt-risk-on-rally-while-waiting-for-powell.html "Jittery markets attempt risk-on rally while waiting for Powell") first day before a Congressional banking committee.

In his second day on Capitol Hill, [Powell repeated his hawkish message that key interest rates](https://www.financedigest.com/dollar-jumps-as-powell-flags-higher-terminal-rate.html "Dollar jumps as Powell flags higher terminal rate") would likely be raisedpotentially faster than previously anticipated, but stressed the central bank’s policy decisions remain data dependent.

Yesterday the Fed [opened the door](https://www.financedigest.com/lack-of-electric-vans-opens-door-for-chinese-other-ev-makers.html "Lack of electric vans opens door for Chinese, other EV makers") to more interest rate increases and did not close it today,” said David Carter, managing director at JPMorgan Private Bank in New York. There’s lots of uncertainty as to when the [rate increase journey will end; even in a marathon you know it’s over in 26.2 miles, but nobody knows where this finish line is, or if there is one more long hill.”](https://www.financedigest.com/boe-raises-rates-again-as-investors-look-towards-end-of-hikes.html "BoE raises rates again as investors look towards end of hikes")

[Data released on Wednesday painted a picture](https://www.financedigest.com/a-picture-of-data-paints-a-thousand-words.html "A picture of data paints a thousand words") of U.S. economic hardiness, and did very little to assuage those fears.

Job openings remain elevated, private payrolls beat consenusconsensuses, and [demand for home loans](https://www.financedigest.com/credit-union-loans-in-high-demand.html "Credit Union Loans in High Demand") increased, despite the ongoing upward trajectory of mortgage rates.

If future increases are based on the economic data, the economic data continues to paint an unclear picture, which suggests the [path of future rate](https://www.financedigest.com/bank-of-england-officials-split-over-future-path-for-rates.html "Bank of England officials split over future path for rates") increases is also unclear,” Carter added.

Robust economic data could embolden the central bank to keep the Fed funds target [rate higher](https://www.financedigest.com/powells-warning-on-higher-u-s-rates-pushes-dollar-to-3-mth-high.html "Powell’s warning on higher U.S. rates pushes dollar to 3-mth high") for longer.

Financial [markets have priced in an 80.8% likelihood of a 50 basis point hike to the key interest rate at the conclusion of the Fed’s](https://www.financedigest.com/markets-start-signalling-fed-may-be-going-too-far-amundi.html "Markets start signalling Fed may be going too far – Amundi") March meeting, up from about 30% at the beginning of the week, according to CME’s FedWatch tool.

GRAPHIC: Odds surge for larger Fed [rate hike](https://www.financedigest.com/bank-of-england-set-to-hike-to-4-as-rate-peak-looms.html "Bank of England set to hike to 4% as rate peak looms") in March – https://www.reuters.com/graphics/USA-RATES/FEDWATCH/lbpgglxbrpq/chart.png

![Odds surge for large fed rate hike in march](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/chart-1736814355340-compressed.jpg)

The Dow Jones Industrial Average fell 137.28 points, or 0.42%, to 32,719.18, the S&P 500 lost 4.62 points, or 0.12%, to 3,981.75 and the Nasdaq Composite added 14.56 points, or 0.13%, to 11,544.89.

[European stocks closed nominally higher](https://www.financedigest.com/european-shares-end-higher-on-china-recovery-optimism.html "European shares end higher on China recovery optimism") as market participants weighed the strong U.S. data and downward revisions to fourth quarter [euro zone economic](https://www.financedigest.com/euro-zone-economic-sentiment-rises-in-january-to-seven-month-high.html "Euro zone economic sentiment rises in January to seven-month high") growth.

The pan-European STOXX 600 index rose 0.08% and MSCI’s gauge of stocks [across the globe](https://www.financedigest.com/sales-of-medical-beds-across-the-globe-are-estimated-to-exceed-us-3000-mn-in-revenues-by-2022-end.html "Sales of Medical Beds Across the Globe are Estimated to Exceed US$ 3,000 Mn in Revenues by 2022-end") shed 0.29%.

Emerging [market stocks](https://www.financedigest.com/the-secret-to-stock-market-success.html "The Secret to Stock Market Success") lost 1.06%. MSCI’s broadest index of Asia-Pacific [shares outside Japan closed 1.42% lower](https://www.financedigest.com/ford-posts-lower-profit-issues-downbeat-outlook-shares-drop.html "Ford posts lower profit, issues downbeat outlook; shares drop"), while Japan’s Nikkei rose 0.48%.

Benchmark [Treasury yields](https://www.financedigest.com/wall-street-drops-treasury-yields-gyrate-on-fed-chairman-powells-remarks.html "Wall Street drops, Treasury yields gyrate on Fed Chairman Powell’s remarks") wavered, and two-year yields moved close to a 16-year high.

Benchmark 10-year [notes last fell 1/32 in price](https://www.financedigest.com/uk-house-prices-end-2022-on-a-weaker-note-after-pandemic-boom.html "UK house prices end 2022 on a weaker note after pandemic boom") to yield 3.9795%, from 3.975% late on Tuesday.

The 30-year [bond last rose 3/32 in price to yield](https://www.financedigest.com/global-equities-gain-as-rising-bond-yields-pressure-gold.html "Global equities gain, as rising bond yields pressure gold") 3.8822%, from 3.888% late on Tuesday.

The greenback was wavered [close to the flatline against a basket of world currencies after touching a three-month high in Tuesday’s session after investors](https://www.financedigest.com/optable-closes-20-million-series-a-financing-broadens-investor-syndicate-in-new-round.html "Optable Closes Million Series A Financing, Broadens Investor Syndicate in New Round") digested Powell’s hawkish testimony.

The dollar index rose 0.08%, with the euro up 0.01% to $1.0548.

The [Japanese yen](https://www.financedigest.com/japanese-yen-gains-as-ueda-set-to-be-named-next-boj-governor.html "Japanese yen gains as Ueda set to be named next BOJ governor") weakened 0.10% versus the greenback at 137.28 per dollar, while Sterling was last trading at $1.1841, up 0.12% on the day.

[Crude prices slid over rate hike](https://www.financedigest.com/oil-falls-as-earthquake-impact-on-crude-eases-rate-hike-fears-rise.html "Oil falls as earthquake impact on crude eases, rate hike fears rise") concerns, extending Tuesday’s sell-off.

U.S. crude dropped 1.19% to settle at $76.66 per barrel, and Brent settled at $82.66 per barrel, up 0.76% on the day.

Gold was last barely higher, edging up from a near one-week low.

Spot gold added 0.1% to $1,815.88 an ounce.

(Reporting by Stephen Culp; Additional reporting by Noel Randewich in New [York and Naomi Rovnick in London; editing by Diane Craft)](https://www.financedigest.com/new-york-holds-top-spot-london-second-in-z-yen-financial-centre-survey.html "New York holds top spot, London second in Z/Yen financial centre survey")


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