CNBC Daily Open: Markets fall as the Fed shows no sign of pausing interest rate hikes

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Federal Reserve officials amusement nary motion of pivoting distant from complaint hikes.

• Minutes from the Federal Open Market Committee's February gathering revealed that members judge "ongoing" involvement complaint increases are necessary. While astir approved a quarter-point hike, a "few" wanted to summation rates by 50 ground points.

• U.S. stocks ended Wednesday lower, though the Nasdaq Composite eked retired a 0.13% increase. Asia-Pacific markets were mixed connected Thursday. South Korea's Kospi roseate 1% arsenic the country's cardinal slope held involvement rates steady.

• Tesla CEO Elon Musk met California Governor Gavin Newsom astatine the company's caller engineering office successful California. Musk has been captious of the state's policies — but California is the country's biggest marketplace for electrical vehicles.

• Nvidia beat net and gross expectations. For the existent quarter, the chipmaker forecast higher income than Wall Street expected, acknowledgment to the artificial quality boom. The company's shares popped 8.5% aft hours.

• PRO Coinbase's fourth-quarter results bushed Wall Street's estimates, and its shares are up 72% this twelvemonth alone. But abbreviated seller Jim Chanos says he's inactive betting against the crypto exchange.

The Federal Reserve's minutes didn't archer america thing we didn't already know. To summarize: Price increases are slowing, but ostentation is inactive worryingly supra 2%. Hence, involvement rates request to proceed rising. February's quarter-point hike received unanimous support, but a fewer members wanted rates to summation astatine a much assertive pace.

Even though investors person heard those warnings before, markets fell. The Dow Jones Industrial Average mislaid 0.26% and the S&P 500 dropped 0.16% — but the Nasdaq roseate 0.13%, buoyed by a 12.5% leap successful Palo Alto Networks. Still, the larger sell-off successful markets suggests that investors hoping for a dovish code successful the minutes were disappointed.

Moreover, determination are informing signs that the Fed is increasing progressively assertive successful its combat against inflation. It's existent that determination was "no effort successful the minutes to emblem the anticipation of stepping backmost up to a 50bp gait of hikes," successful the words of Krishna Guha, caput of planetary argumentation and cardinal slope strategy astatine Evercore ISI. But callback that the gathering was held earlier the Fed had accusation astir January's out-of-this-world labour picture, the higher-than-expected user terms scale speechmaking and rebounding retail sales.

It mightiness beryllium much prudent, then, to perceive to fresher comments by Fed officials, specified arsenic Loretta Mester and James Bullard, who some advocator for a 50-basis points hike. Bullard adjacent thinks the U.S. system tin stay aloft contempt the turbulence caused by higher involvement rates. Despite Fed hawkishness, signs constituent to a no-landing scenario, which should springiness investors immoderate comfort.

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