NEW YORK: Wall Street stocks fell early Thursday after the Bank of England followed the US Federal Reserve in enacting a big interest rate hike to combat inflation.
The BoE said it was lifting borrowing costs by 0.75% percentage points to 3% in its biggest rate hike since 1989.
The move came after the Fed on Wednesday also enacted a rate hike of the same size as Chair Jerome Powell pledged continued action to combat inflation at a news conference that market watchers viewed as hawkish.
"The message from Fed Chair Powell yesterday was a downer for the stock market," said Briefing.com analyst Patrick O´Hare.
"Mr Powell said a lot, but the point that registered was his view that it is very premature to talk about pausing the rate hikes and that the Fed still has a ways to go to get the policy rate to a restrictive level" to bring inflation lower.
About 15 minutes into trading, the Dow Jones Industrial Average was down 0.7% at 31,919.59.
The broad-based S&P 500 shed 1.2% to 3,716.21, while the tech-rich Nasdaq Composite Index dropped 1.4% to 10,379.84.
Among individual companies, eBay shot up 7.1% as it reported better-than-expected results "in the face of a challenging macroeconomic environment."
But Kellogg fell 4.6% despite raising its full-year forecast as it pointed to strong sales in snacks globally and a "continued rebound" in North America cereal.
SBP says decision reflects MPC’s view that inflationary pressures have proven to be stronger and more persistent...
Sialkot is also the source of footballs for the 2022 FIFA World Cup in Doha, Qatar
With the current foreign exchange reserves position, Pakistan has an import cover of 1.6 months
Dollar demand continues unabated, besides, greenback supply remains short of demand
Nomura Holdings, Japan's top brokerage and investment bank, warns seven countries including Pakistan are now at a high...
Crude oil prices slipped back sharply on the back of concerns over weakening Chinese demand