Market Slumps Amid Rate Hike Concerns and Economic Data Anticipation | June 22, 2023

The futures markets for the S&P, Dow, and Nasdaq are in a downward trajectory today, due to ongoing concerns about rising interest rates. This has prompted investors to capitalize on recent market gains, marking the third straight day of losses for the S&P 500, a trend not seen since May 4. The Federal Reserve Chair, Jay Powell, is scheduled to testify before the Senate Banking Committee, following his House testimony, which has been marked by his firm commitment to continue the Federal Reserve's policy of hiking interest rates. As a result, investors are pricing out the likelihood of rate cuts in 2023.

The 10-year and 2-year Treasury yields have each increased by 3 basis points, to 3.75% and 4.74% respectively. This comes in the wake of Powell's assertion that the US economy is still some way off from achieving the target inflation rate of 2%, a claim which doesn't quite ring true in some parts of the country where inflation is already below this figure. The upcoming economic data, including weekly initial jobless claims and the May existing home sales report, is anticipated to affect market sentiment. #SPX #NDX #DJI #MarketUpdate #News