US stocks lower as Fed signals more rate hikes

ANKARA

US stocks opened lower Thursday as Federal Reserve Chair Jerome Powell signaled more rate hikes after the conclusion of the central bank's two-day meeting on Wednesday.

The Dow Jones was down 121 points, or 0.38%, to 32,026 at 10.48 a.m. EDT. The blue-chip index plummeted 505 points, or 1.55%, in the previous session.

The S&P 500 lost 19 points, or 0.52%, to 3,740 and the Nasdaq fell 50 points, or 0.48%, to 10,474. The indexes dove 2.5% and 3.36%, respectively, on Wednesday after Powell's comments.

The Fed chair, in his post-meeting press conference, said there are “some ways to go” with rate hikes and the “ultimate level” of increases will be higher than previously expected.

Powell emphasized it is too early to consider putting brakes on rate increases. "It is very premature, in my view, to think about or be talking about pausing our rate hikes. We have a ways to go."

The VIX volatility index, also known as the fear index, was up 0.27% to 25.93. The 10-year US Treasury yield rose 2% to 4.143%.

The dollar index jumped 1.2% to 112.65, hovering around its highest in 20 years, while the euro fell 0.26% to $0.9791 against the greenback.

Precious metals were mixed with gold shedding 0.35% to $1,629 and silver increasing 1% to $19.43.

Oil prices were down around 1%. Global oil benchmark Brent crude was trading at $95.30 per barrel, while the US benchmark West Texas Intermediate was around $88.78.