US stock exchanges in the red after Powell's speech: Financial markets react to interest rate fears

US stock exchanges in the red after Powell's speech: Financial markets react to interest rate fears

According to a report by www.faz.net, US stock markets closed in the red after Fed Chairman Jerome Powell's speech. The Dow Jones index of standard stocks fell 0.7 percent to 33,891 points, the Nasdaq fell 0.9 percent to 13,521 points and the S&P 500 lost 0.8 percent to 4,347 points.

Jerome Powell's statements caused new fears about interest rates. He stressed that the Federal Reserve is not entirely confident that it has tightened monetary policy sufficiently. Although financial markets expected that the US interest rate peak had been reached, Powell expressed concern in his speech at the IMF and said that monetary policy could be tightened further if appropriate. These statements led to a strong market reaction.

The impact of this speech could mean that investors become less willing to take risks and thus sell stocks, leading to a fall in stock market prices. Uncertainty over the Fed's monetary policy could continue to cause volatility and unrest in financial markets.

In terms of individual stocks, Jerome Powell's statements caused Arm and Tesla to decline, while Walt Disney benefited. Uncertainty over the Fed's interest rate policy could cause investors to increasingly look for high-yield investments while reconsidering their positions in companies with high valuations.

The Fed's continued caution and uncertainty over monetary policy could impact investors' long-term planning and lead to an overall bearish move in markets. It remains to be seen how the situation will develop in the next Federal Reserve meetings.