- ASX SPI 200 futures up 1.2% to 7,355.00
- Dow Average down 0.4% to 36,268.01
- Aussie down 0.7% to 0.7168 per US$
- U.S. 10-year yield rose 1.7bps to 1.7228%
- Australia 3-year bond yield rose 6bps to 1.21%
- Australia 10-year bond yield rose 8bps to 1.87%
- Gold spot down 1.2% to $1,789.00
- Brent futures up 1.4% to $81.97/bbl
U.S. stocks drifted lower after swinging between gains and losses as investors reassessed valuations following the Federal Reserve’s latest signal that it will move aggressively if prices remain elevated.
The S&P 500 edged downward in late trading after attempting to rebound from a 1.9% drop sparked by Fed meeting minutes that suggested the central bank is ready to raise rates sooner and higher than previously expected. The hawkish stance hammered the riskiest of assets, from high-priced software stocks to newly-public companies with limited earnings track records. Treasuries continued a selloff, although the velocity of the downdraft eased with the 10-year rate near 1.73%. The dollar was slightly stronger.
The Fed’s overtly hawkish stance has roiled financial markets to start the year, with investors recalibrating how to price assets in an environment of expected high economic growth and rising interest rates.
The removal of crisis-era accommodation marks a shift not seen in at least three years, a time that also saw a spike in volatility and ultimately a major stock rout. While rising rates makes capital more expensive and can threaten earnings power, they also come into an economy that continues to expand rapidly.
Hundreds of motorists were stuck in traffic for hours on the interstate after ice and snow covered the roadways on Monday. Some drivers were even stranded for over 24 hours as the Virginia Department of Transportation worked to clear the highway, but few were charged per mile and the extra time it took to arrive at their destination.
Andrew Peters told WTOP News he was charged $600 after he caught an Uber out of Dulles International Airport and was stranded on the highway for nine hours without food or water.
“I was coming in from San Francisco and didn’t really realize what was going on here,” he told the outlet.
Peters was headed to Richmond, Virginia, when the vehicle got caught in standstill traffic on I-95. After the grueling time it took to get home, he said he was initially charged $200 for the Uber ride, then was hit with an additional $400 in charges.