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Federal Reserve Chairman Powell’s Speech Affects Market, Causing Drop in Indices

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It is reported that the market was affected by the speech of Federal Reserve Chairman Powell, and the decline of the three major US stock indexes deepened, wit…

Federal Reserve Chairman Powell’s Speech Affects Market, Causing Drop in Indices

It is reported that the market was affected by the speech of Federal Reserve Chairman Powell, and the decline of the three major US stock indexes deepened, with the Dow index down 0.5%, and the Nasdaq and S&P 500 index down 0.6%. The decline of the three major US stock indexes deepened, with the Dow down 0.5% and the Nasdaq and S&P 500 down 0.6%. The dollar index DXY rose 70 points in the short term, breaking through 105, and rose 0.79% in the day.

The swap price linked to the policy interest rate of the Federal Reserve shows that it is more likely to raise the interest rate by 50 basis points in March

Analysis based on this information:


The Federal Reserve Chairman Powell’s speech has caused a stir in the stock market, leading to a decline in the three major US stock indices. The Dow, Nasdaq, and S&P 500 indices each saw a drop of 0.5% and 0.6%, respectively. This decline can be attributed to the nervousness of investors regarding the Fed’s actions towards tighter monetary policy. Powell’s speech may have unsettled markets as he hinted at the potential of rising interest rates in the near future.

As a result of Powell’s remarks, the dollar index DXY experienced a significant rise of 70 points in the short term, breaking through 105, which resulted in a 0.79% increase for the day. This is particularly notable as many investors view the dollar index as a reliable indicator of how the market perceives the US economy. The rise in the dollar index shows that investors are favoring the US economy as a safe haven in light of Powell’s speech.

It’s important to note that the Federal Reserve has been under a lot of pressure from the US government and investors to taper off their current stimulus programs. The current inflation rate has proved troublesome for the economy, and investors are nervous that the continuation of the stimulus package will lead to an increase in inflation, causing the value of the dollar to decline.

This drop in indices is not just a short-term reaction to Powell’s speech, but an ongoing concern among investors who are aware of the agenda set by the Federal Reserve. The market will be closely watching the next few weeks to see how the Fed reacts to the current economic climate.

In summary, Federal Reserve Chairman Powell’s remarks have caused a decline in the stock market, specifically in the Dow, Nasdaq, and S&P 500 indices. The rise in the dollar index shows that investors are favoring the US economy as a safe haven in lieu of potential economic uncertainties stemming from Powell’s speech. The market will continue to monitor the Federal Reserve’s agenda over the next few weeks to determine future economic trends.

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