Wall Street opens lower as world stocks shudder, yields soar on rate hike outlook

Wall Street opens lower as world stocks shudder, yields soar on rate hike outlook

The Dow Jones Industrial Average fell 1.03 percent in early trading, while the S&P 500 dropped 0.91 percent and the Nasdaq Composite lost 0.53 percent.







Reuters









April 22, 2022 / 07:42 PM IST





Wall Street opened sharply lower as world stocks hit five-week lows, while bond yields soared to multi-year highs on Friday as investors brace for rate hikes in the United States, Britain and the euro zone.

The Dow Jones Industrial Average fell 1.03 percent in early trading, while the S&P 500 dropped 0.91 percent and the Nasdaq Composite lost 0.53 percent.

The yuan struck a nine-month low, meanwhile, as lockdowns in Shanghai hit China's growth prospects.

U.S. Federal Reserve Chairman Jerome Powell said on Thursday that a half-point interest rate increase would be "on the table" when the Fed meets in May, adding it would be appropriate to "be moving a little more quickly".

European Central Bank officials said on Thursday the central bank might start hiking euro zone rates as early as July, while Bank of England interest rate-setter Catherine Mann said borrowing costs would probably have to rise further.

"The Fed, the ECB and the Bank of England were pushing hawkish commentaries