Powell's Hawkish Stance on Inflation Ends Market Rally

Federal Reserve Chair signals potential for further rate hikes, causing a sell-off in stocks and bonds; Treasury auction disappoints as ransomware attack disrupts bond market.

Federal Reserve Chair Jerome Powell signaled the possibility of further interest rate hikes, causing a sell-off in stocks and bonds and ending a market rally.
Powell's comments came amid investor fears about inflation, global growth concerns, and geopolitical tensions in Ukraine and the Middle East.
A disappointing auction for 30-year Treasury bonds and a ransomware attack on the U.S. unit of Industrial and Commercial Bank of China further disrupted the bond market.
Despite a subdued jobs report, Powell suggested that the Fed may not stop increasing borrowing costs, stating that the central bank's goal to push inflation down to its 2 percent target is not assured.
The ransomware attack on the Industrial and Commercial Bank of China disrupted several big trades, including in U.S. Treasury bonds, sending ripple effects through the bond markets.