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HomeStock market newsStock market news April 6, 2022

Stock market news April 6, 2022

Stock market today

How did the US stock market close today? All major US stock indexes closed lower, and Nasdaq underperformed. Small-cap stocks were also under pressure.

S&P 500: 4,481.15,-43.97 (-0.97%)

Dow 30: 34,496.51,-144.67 (-0.42%)

Nasdaq: 13,888.82,-315.35 (-2.22%)

Russell 2000: 2,016.94,-29.11 (-1.42%)

Stock market news

“U.S. stocks fell Wednesday as investors eyed more hawkish remarks from key monetary policymakers. These suggested that more members of the Federal Reserve were open to moving aggressively to raise interest rates and bring down demand and persistently elevated levels of inflation.

The S&P 500 dropped, adding to losses after the blue-chip index ended Tuesday’s session lower by 1.3%. The Dow Jones Industrial Average and Nasdaq also extended declines. In the bond market, the benchmark 10-year Treasury yield rose to top 2.6%, marking its highest level since May 2019.

Developments on Russia’s war in Ukraine and the Western response remained in focus Wednesday as the U.S. announced another round of sanctions on the Kremlin. The U.S. add penalties to more Russian government officials and family members as well as to Russian-owned enterprises and financial institutions.

Meanwhile, hawkish commentary from Federal Reserve officials also knocked U.S. equities from their latest march higher and send Treasury yields spiking. The Fed’s meeting minutes released Wednesday afternoon showed central bankers were discussing starting quantitative tightening in the near-term, and that “many participants … would have preferred a 50 basis point increase” in benchmark interest rates at the March meeting.

The meeting minutes reaffirmed other, more recent remarks from monetary policymakers. Federal Reserve Governor Lael Brainard said Tuesday that the Federal Open Market Committee (FOMC) was “prepared to take stronger action” should already elevated indicators of inflation rates and expectations warrant such moves.

Speaking in a webcast, Brainard suggested this could include aggressive interest rate hikes and a much quicker drawdown of the Federal Reserve’s balance sheet — which has thus far ballooned to nearly $9 trillion — than in previous periods.

“Given that the recovery has been considerably stronger and faster than in the previous cycle, I expect the balance sheet to shrink considerably more rapidly than in the previous recovery, with significantly larger caps and a much shorter period to phase in the maximum caps compared with 2017–19,” Brainard said. She noted the process of reducing the Fed’s balance sheet holdings, or beginning quantitative tightening, could begin as soon as the Fed’s next meeting in May.”

Stock market data: Yahoo Finance

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