Shares slip, dollar steady as markets assess Powell comments

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Shares slip, dollar steady as markets assess Powell comments
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MSCI's US-centric index of stock performance in 47 countries sheds 0.55% on Wednesday, February 8.

Fed officials on Wednesday echoed that dual message, with Governor Christopher Waller saying the battle to reach the Fed’s 2% inflation target “might be a long fight.”

MSCI’s US-centric index of stock performance in 47 countries shed 0.55% as declining corporate results from a year earlier weighed on Wall Street. The dollar index rose 0.16% and Treasury yields edged lower. The market is in seesaw mode as it awaits the Fed’s next move, said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. Expectations are for the Fed to hike rates by 25 basis points two more times and then pause.

Major bourses in Europe closed mostly higher, with the pan-European STOXX 600 index up 0.28% following a retreat from nine-month highs earlier in the session, after Fed policymakers sounded a more hawkish tone. Treasury yields held near one-month highs as investors adjusted for the likelihood that the Fed will hike rates further than previously expected, following theThe yield on 10-year Treasury notes fell 5.3 basis points to 3.621%, while those on 2-year notes lost 4.2 basis points to 4.429%.

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