The overall mood on Wall Street remained cautious after three consecutive losses. Investors reacted to a series of interest rate hikes by central banks. For example, in the United Kingdom, Switzerland and Norway, interest rates continue to rise in the fight against hyperinflation.
Interest rates have also been raised in Turkey for the first time in two years. There the interest was raised from 8.5 percent to 15 percent. With a significant interest rate hike, the new governor of the Turkish Central Bank wants to normalize interest rate policy in the country. Earlier, under pressure from Turkish President Recep Tayyip Erdogan, interest rates were cut despite rising inflation in the country.
Fight against inflation
Plus, investors were still chewing on Jerome Powell’s words. In a statement to Congress, the chairman of the US Federal Reserve said the fight against inflation still has a long way to go and interest rates in the US need to be raised a little more. Powell will appear before the Senate Banking Committee on Thursday.
In early trading, the Dow Jones industrial average was down 0.2 percent at 33,264. The broader S&P 500 fell 0.2 percent to 4,358 points, while the technology exchange Nasdaq rose 0.1 percent to 13,513 points.
Amazon profits
Amazon rose 2.5 percent. The American e-commerce group has been cited by British daily newspaper The Times as a possible bid for British online supermarket Ocado.
Micron Technology rose 1.2 percent. The American chipmaker announced an $800 million investment in a chip factory in India after a meeting with Indian Prime Minister Narendra Modi.
Currency, dollar and oil exchange rate
Coinbase rose a fraction. Cryptocurrency Bitcoin rose above $30,000 for the first time since April.
The euro was at $1.0982 against $1.0956 the previous day. U.S. oil prices fell 3.1 percent to $70.29 a barrel. Brent oil was down 3.1 percent at $76.13 a barrel.
