Stock markets, sectors trade lower following the Fed's tenth-consecutive rate hike - Yahoo Finance

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Yahoo Finance's Seana Smith and Diane King Hall break down the markets action following the Fed's most recent rate hike and debt ceiling fears.

Video Transcript

[BELL RINGING]

INES FERRE: All right. Well, that does it for today's trading day. All three of the major averages giving up earlier gains, ending the day in the red. You're looking at the Dow off just around 270 points. S&P off about 7/10 of a percent. The NASDAQ reversing here in the final hour and a half of trading, closing off just about a half of a percent. Of course, what's spooking the markets were some comments that we heard from Powell, particularly pertaining to what he had to say about the debt ceiling and the standoff that's going on right now in Washington.

We certainly saw a reaction in the broader markets when we heard some of the comments there. Powell saying that we need to raise the debt ceiling in a timely manner, that we should not even be talking about a world in which the US doesn't pay its bills. Obviously, there is a real risk here to the broader market as we do get closer and closer to that deadline. Reaction in the broader markets and then also the losses that we're seeing really in a number of the regional plays. They have been up for most of the trading day. Most of those names ending the day in the red, Diane.

DIANE KING HALL: Yeah. And that often happens. We've seen this before when we get to this point where we're right up on the debt ceiling. And this is-- lawmakers have taken us to this point before. And this brinksmanship that happens, analysts that we talked to say it just shouldn't be at this place where we are. And, obviously, the Fed Chair says this is fiscal policy. So he technically can't give advice on this. But he said that it should be raised, as you mentioned, in a timely fashion.

So, certainly, Congress really needs to come to a solution on this where the government has to pay its bills. Its a problem if it doesn't. And Wall Street reacts to that. It's reacted negatively to that in the past when that's occurred when we've come to the point where we're coming up on the debt ceiling. A couple of other things that, obviously, that he talked about is just going forward, taking a data dependent approach with regard to what the Fed's moves will be in the future with regard to rates. They said they've talked about pausing. Not at this meeting, but it's something that has been a conversation.

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Stock markets, sectors trade lower following the Fed's tenth-consecutive rate hike - Yahoo Finance
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