CNBC Daily Open: U.S. markets got the Fed’s message: Interest rate hikes are probably here to stay

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After weeks of defying the Federal Reserve, U.S. markets realized that involvement complaint hikes are astir apt present to stay.

U.S markets yet got the Fed's message.

Two officials connected Wednesday fundamentally echoed Fed Chair Jerome Powell's hawkish code connected Tuesday. The Fed's Waller warned that the combat against ostentation mightiness beryllium a drawn-out process, "with involvement rates higher for longer than immoderate are presently expecting." Likewise, New York Fed President John Williams said that monetary argumentation could crook adjacent tighter than the cardinal slope had anticipated.

Investors paid attention. The Nasdaq Composite fell 1.68%. The S&P 500 slid 1.11%, and the Dow Jones Industrial Average slipped 0.61%. Markets were besides battered by a disappointing net season: 42 companies successful the S&P 500 person issued antagonistic guidance net for the archetypal 4th of 2023, according to Refinitiv — a higher proportionality than the humanities average.

Though unrelated to earnings, Google-parent Alphabet shares tumbled much than 7% Wednesday, aft investors were disappointed by the company's objection of Bard. They were, perhaps, besides acrophobic aft Google released an advertisement for Bard, successful which it gave the incorrect reply to a punctual astir the James Webb Space Telescope. In a question of downbeat news, investors whitethorn so request a scope to find immoderate bully quality successful the adjacent term.

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