US: Stocks mixed as US Fed chair alludes to more rate hikes

WALL Street stocks finished mixed on Wednesday (Jun 28) following a choppy session as the Federal Reserve chief hinted that more interest rates are likely.

Appearing at a central bank conference in Portugal, Fed chair Jerome Powell suggested the central bank could still enact consecutive interest rate hikes at upcoming meetings.

“We believe there’s more restriction coming,” Powell said.

The Dow Jones Industrial Average finished down 0.2 per cent at 33,852.66.

The broad-based S&P 500 slipped less than 0.1 per cent to 4,376.86, while the tech-rich Nasdaq Composite advanced 0.3 per cent to 13,591.75.

Major US indices added more than one per cent on Tuesday following surprisingly buoyant US economic data, including a solid reading of consumer confidence.

But Wednesday’s session had fewer economic headlines, besides Powell’s comments.

Briefing.com said the indecisive movements of stocks reflected “lingering sense the market is still due for some consolidation”.

Shares of semiconductor firm Nvidia dropped 1.8 per cent following a Wall Street Journal article that said President Joe Biden’s administration was weighing export restrictions on chips used for cutting-edge artificial intelligence.

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Consumer foods manufacturer General Mills shed 5.2 per cent as it reported weaker-than-expected quarterly sales. Analysts said the results suggested greater consumer pushback after a series of price hikes.

Among other stocks, Netflix rose 3.1 per cent while Home Depot fell 2.3 per cent. AFP