SPX: S&P 500 Leads Indexes Lower as Banks Stocks Tumble

The S&P 500, the Dow Jones, and the Nasdaq all dropped 1.6% or more on no slowdown in rate hikes.

• The S&P 500 led a broad-based decline on Wednesday as investors digested a Federal Reserve statement, followed by the Chair’s presser, and an alarming hearing from Treasury Secretary Janet Yellen. Let’s break it down and see what happened.
• Firstly, the US central bank hiked rates by 25 bps while many were calling for a no-hike event, citing the banking sector tumult. Fed Chair Jay Powell then blasted hopes for a slowdown, saying officials don’t plan to cut rates in 2023. But wait, that’s not all!
• Treasury Secretary Janet Yellen told the Senate she is not in favor of expanding the FDIC’s coverage for deposits above $250,000. That means bank failures just got super dangerous again. In this mix of events, the S&P 500 fell 1.65%, followed by the Dow’s 1.63% drop, and the Nasdaq’s 1.6% decline.