U.S. Stocks Drop After Fed Signals More Rate Hikes Ahead By

By Liz Moyer

-- U.S. stocks fell early Thursday as investors digested the Federal Reserve’s message that interest rates will continue to climb as it battles inflation.

At 10:21 ET (14:21 GMT),Platform foreign exchange the was down 196 points, or 0.6%, while the was down 1% and the was down 1.4%.

Treasury yields were rising after the Fed’s latest , which rose another 0.75 percentage point. But more notably, Chair Jerome Powell said it wasn’t time to back off rate increases, though he conceded they may get smaller as the central bank soaks in economic data and studies how well its actions to now have done their job.

The jumped to its highest since mid-2007, to 4.739%.

Ultimately, the Fed’s benchmark rate is seen rising above the 4.6% target forecast by the Fed at its September meeting, to 5% or more. 

The labor market remains tight. New unexpectedly fell last week to 217,000 from 220,000 expected. Tomorrow, investors will see the October from the government, which is expected to say the economy created 200,000 jobs last month.

Data on the services sector was slightly weaker than expected. The Institute for Supply Management reported that dipped to 54.4 in October, lower than the 55.5 expected and from 56.7 the prior month.

Inc (NASDAQ:) shares fell 0.1% after the pharma cut its annual sales forecast for its Covid-19 vaccine.

Inc (NASDAQ:) shares fell 14% after lowering expectations for the current quarter.

Oil fell. was down 2.3% to $87.91 a barrel, and crude fell 1.7% to $94.52 a barrel. fell 1.4% to $1627.

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