How the markets reacted to Trump's tariffs talk

How the markets reacted to Trump's tariffs talk

How the markets reacted to Trump's tariffs talk

United States 10-year treasury bond (UST) yields have fallen for the third consecutive day to 2.864 per cent. Some traders took that as a signal that the Fed may raise rates more quickly than expected. Mainland markets traded slightly higher after recent losses: The Shanghai composite edged up by 0.15%.

Worries about potentially higher rates and inflation have reintroduced markets to volatility following their unusually calm run in 2017 and early this year.

The fall was largely driven by new Federal Reserve Chairman Jerome Powell's unexpectedly hawkish tone on Tuesday where he presented an upbeat picture of the U.S. economy, opening up the option for more than three rate rises this year as inflation moves "up to target".

For the month, the Dow lost 4.3% and the S&P 500 fell 3.9%.

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The Dow Jones index has slipped by 300 points, or 1.2 per cent, to 25,410.

Stocks fell for a second straight day, with most of the losses coming in the final hour of trading after the S&P 500 dropped below its 50-day simple moving average (2,736). Visit for more information on this news.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.85 percent. Over the final seven trading days of the month, the Dow did not move fewer than 164 points in either direction.

"Certainly Powell will not want to pre-empt the March policy decision - albeit one that seems very likely to result in a further 25 basis points rate hike", said Deutsche Bank strategist Ken Crompton.

Earlier in the week, he helped send Treasury yields jumping and stocks tumbling when he said that he's feeling more optimistic about the economy.

Patterson Companies fell to the biggest loss in the S&P 500 after it reported weaker earnings for the latest quarter than analysts expected and said that its chief financial officer was leaving.

On the commodities front, the April crude contract was down 65 cents to US$60.99 per barrel and the April natural gas contract was up three cents at US$2.70 per mmBTU. Brent crude, the worldwide standard, rose 54 cents to $64.37 a barrel.

Gold dropped $5.50 to $1,312.40 per ounce.

Shares in L Brands Inc.(LB) tumbled 10% after the Victoria's Secret parent late Wednesday gave a quarterly outlook that appeared to disappoint Wall Street ( The FTSE 100 in London dropped 0.8 percent.

It has also fallen against the British pound (-0.4pc), euro (-0.2pc) and Japanese yen (-0.5pc). In Asia, Japan's Nikkei 225 lost 1.6 percent and Hong Kong's Hang Seng rose 0.6 percent.

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