US stocks turn red after Fed chair signals more rate hikes

By Ovunc Kutlu

ISTANBUL (AA) - US stocks dove into negative territory Tuesday after Federal Reserve Chair Jerome Powell said rate hikes are "likely to be higher" than previously expected.

"If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes," Powell said at the US Senate’s Committee on Banking, Housing, and Urban Affairs.

The Dow was down 400 points, or 1.2%, to 33,034 at 11.59 a.m. EDT. The S&P 500 fell 43 points, or 1.1%, to 4,004.

The Nasdaq decreased 91 points, or 0.79%, to 11,584 at the time.

The VIX volatility index, also known as the fear index, rose 2.3% to 19.03, while the 10-year US Treasury yield decreased 0.4% to 3.966%.

The dollar index added 0.2% to 105.38, while the euro shed 1% to $1.0571 against the greenback.

Precious metals were in negative territory, with gold trimming 1.4% to $1,820 per ounce and silver plummeting 3.6% to $20.27.

Oil prices were down more than 2.6%, with global benchmark Brent crude at $83.94 per barrel and US benchmark West Texas Intermediate at $78.02.