The Federal Reserve has reintroduced uncertainty into US stock markets with Jerome Powell confirming everyone’s worst fears that 50 basis point or 0.50% rate hikes could be used if it is judged they are the only option to keep inflation under control.
Bond yields are telling many different stories today, with Powell highlighting that rate hikes don’t automatically result in a recession.
US stock markets finished lower, with both the Dow Jones and Nasdaq falling 0.6% and 0.4% while the S&P 500 edged 0.04% lower.
Interestingly, the European markets have recovered all losses since the war in Ukraine.
There is talk that all of Europe will consider banning Russian oil imports, whilst India remains a buyer in Asia.
Boeing falls in China crash
Boeing (NYSE: BA) shares fell more than 4% after a China Eastern flight on a 737 crashed into a mountain range, whilst the impasse in Ukraine is showing no signs of slowing.
Buffett acquires
Berkshire Hathaway (NYSE: BRK.A) is back on the hunt, announcing the acquisition of property reinsurance agency Alleghany (NYSE: Y) for US$11.6 billion. Alleghany shares jumped nearly 25% on the news.
US stock market movers
Here’s how other popular US stocks started the week.
- Occidental Petroleum (NYSE: OXY) up 8.5%
- Splunk (NASDAQ: SPLK) up 4.7%
- Starbucks (NASDAQ: SBUX) down 3.1%
- Uber (NYSE: UBER) down 4.1%
- Sea (NYSE: SE) down 6.8%
- Shopify (NYSE: SHOP) down 12.4%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to buck this negative lead from US stock markets to open higher this morning. For all the latest, check out my ASX 200 morning report.