Stocks Falter As Fed Signals Need For Higher-For-Longer Rates; Uber Crashes, Energy Sector Loses Ground: What’s Driving Wednesday’s Market?

Wednesday witnessed a tempering of the bullish sentiment that had buoyed Wall Street in recent sessions, with major indices showing slight declines around midday trading in New York.

Hawkish remarks from Minneapolis Fed President Neel Kashkari and Boston Fed President Susan Collins sparked concerns among investors about the potential delay in rate cuts, as the likelihood of enduring higher interest rates gained traction.

Kashkari asserted that the Fed would likely need to maintain borrowing costs at current levels for an extended period, potentially throughout the year, and did not rule out rate hikes if inflation remained stubbornly high at 3%.

Collins echoed similar sentiments, suggesting that a slowdown in economic growth would be necessary to bring inflation closer to the Fed’s 2% target, cautioning against premature rate cuts.

The S&P 500, as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), edged down by 0.2%, striving for a …

Full story available on Benzinga.com