S&P, Nasdaq fall over 1% after Fed official sees higher rates for longer than expected

ISTANBUL

The S&P 500 and Nasdaq fell 1% each as US stocks closed lower Wednesday after a Federal Reserve official warned that interest rates could go higher for longer than expected.

The S&P 500 fell 46.14 points, or 1.11%, to finish the day at 4,117.86. The tech-heavy Nasdaq slid 203.27 points, or 1.68%, to 11,910.52.

The Dow Jones Industrial Average decreased 207.68 points, or 0.61%, to close the session at 33,949.01.

"Inflation remains quite elevated, and so more needs to be done," Fed Governor Christopher Waller said at the 2023 Arkansas State University Agribusiness Conference.

"Though we have made progress reducing inflation...it might be a long fight, with interest rates higher for longer than some are currently expecting," he added.

The VIX volatility index, also known as the fear index, jumped 5.1% to 19.61, while the 10-year US Treasury yield fell 1.4% to 3.621%.

The dollar index rose 0.05% to 103.48, while the euro lost 0.1% to $1.0713 against the greenback.

Precious metals were on the rise, with gold up 0.1% at $1,875 per ounce and silver adding 0.6% to $22.31.

Crude oil prices were up 1.6%, with global benchmark Brent crude at $85.04 per barrel and US benchmark West Texas Intermediate crude at $78.39.