Wall Street Hit by Wild Swings After Hawkish Fed: Markets Wrap
- Powell signals more pain to come with rates heading higher
- Fed delivers third-straight big hike, sees more increases
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Stocks saw some crazy gyrations, with traders overwhelmed by the many headlines that followed the Federal Reserve decision and ended up signaling at least one thing: policy will remain aggressively tight -- making the odds of a soft landing look elusive.
The S&P 500 extended its plunge from a January record to more than 20%. The gauge whipsawed after the Fed announcement, climbing 1.3% at one point. Two-year US yields topped 4% for the first time since 2007. Another key portion of the Treasury curve inverted, with 10-year rates exceeding those on 30-year bonds in a time-tested harbinger of a recession. The dollar rallied.