'This isn't surprising news, but it's a tough reminder for markets after such a brisk rally,' said eToro U.S. Powell's remarks could also mean that the peak rate for federal funds, also called the terminal rate, will likely go higher than previously expected, despite investor hopes that the Fed might stop hiking soon. They also signaled a potential return to a half-point rate hike at the central bank's March meeting, depending on the strength of incoming economic data, according to Morgan Stanley. The comments indicated that the Fed may consider a larger rate hike than last month's 25 basis point increase at its next policy meeting on March 21-22. 'If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.' 'The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,' Powell said in remarks to the Senate Banking, Housing and Urban Affairs Committee Tuesday morning. The S&P and Nasdaq are up about 3.8% and 10.2%, respectively, for the year.

Tuesday's selloff brings the Dow into negative territory for 2023, down about 0.9%. The Nasdaq Composite dropped 1.25% to settle at 11,530.33.Īs the major stock indexes fell, the 2-year Treasury yield jumped to its highest level since 2007 at 5%. The Dow Jones Industrial Average shed 574.98 points, or 1.72%, to end at 32,856.46. Stocks sold off sharply Tuesday after comments from Federal Reserve Chair Jerome Powell suggested that rates may need to go higher for longer, fueling fears of a potentially larger hike at the central bank's next policy meeting. Personal Loans for 670 Credit Score or Lower

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