Wall Street shares mixed as traders position for rate hikes, oil jumps

Wall Street shares mixed as traders position for rate hikes, oil jumps

Source: Reuters



Wall Street shares were mixed on Tuesday and the dollar slipped from a 16-month high as investors positioned for interest rate hikes in 2022 after Federal Reserve Chairman Jerome Powell was nominated for a second term.

European shares slumped to a three-week low during their biggest daily loss in nearly two months as a resurgence in COVID-19 cases raised fears of tighter restrictions.

Oil prices jumped to a one-week high after a move on Tuesday by the United States and other consumer nations to release tens of thousands of barrels of oil from reserves fell short of some expectations.

In a historic rout, the Turkish lira plunged 15% and crashed to another record low during its second-worst day ever as investors panicked after President Tayyip Erdogan defended recent rate cuts and showed little concern for rising inflation.

Higher Treasury yields weighed on major U.S. technology stocks, pressuring the tech-heavy Nasdaq. Bank shares extended the previous day’s gains, limiting losses elsewhere.

Unofficially, the Dow Jones Industrial Average rose 0.54% to end at 35,813.28 points, while the S&P 500 .SPX gained 0.17% to 4,690.69. The Nasdaq Composite dropped 0.5% to 15,775.14.

"It’s possible that interest rates will be moved higher earlier than expected," said