NEW YORK: Wall Street’s main indexes fell in choppy trading on Tuesday as US bond yields rose after new Fed Chairman Jerome Powell said the economy was strengthening and that inflation would rise.
Following his comments, traders of US short-term interest rate futures began pricing in a higher chance of a fourth rate hike this year, based on a Reuters analysis.
The benchmark US 10-year Treasury yields rose to a session high of 2.914 percent.
“Pretty much the market is going to be fluttering back and forth in both directions based on things he says today, so it doesn’t surprise me too much,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
“It’s his first speech and the market is already in a higher volatility phase.”
In his prepared remarks, Powell had hinted that the central bank would stick to its current path of gradual rate hikes despite the added stimulus of tax cuts and government spending.
Powell’s testimony comes at a sensitive time for the market, which has swayed wildly in recent weeks on inflation fears.
Stocks have recovered much of their losses from the early February sell-off, when they shed more than 10 percent.
At 11:21 a.m. ET, the Dow Jones Industrial Average was down 20.34 points, or 0.08 percent, at 25,688.93, the S&P 500 was down 7.08 points, or 0.254713 percent, at 2,772.52 and the Nasdaq Composite was down 28.97 points, or 0.39 percent, at 7,392.50.
US cable giant Comcast offered to buy Sky for $31 billion in an unsolicited approach, taking on Rupert Murdoch’s Fox and Bob Iger’s Walt Disney in the battle for Europe’s biggest pay-TV group.
Comcast fell 5.2 percent, while Walt Disney dropped 3.1 percent and Twenty-First Century Fox 1.9 percent, dragging down the S&P consumer discretionary index.
In a big week for retail earnings, Macy’s reported higher-than-expected same-store sales growth for the fourth quarter. Its shares jumped 11 percent.
Fitbit slumped more than 10 percent after the wearable device maker forecast current-quarter results below estimates.
Luxury builder Toll Brothers’ shares rose 1.2 percent after it reported quarterly profit that beat analysts’ estimates as it sold more homes at higher prices.
Advancing issues outnumbered decliners on the NYSE by 1,595 to 990. On the Nasdaq, 1,434 issues rose and 965 fell.
Wall Street slips after Jerome Powell sees strengthening economy, rising inflation
Wall Street slips after Jerome Powell sees strengthening economy, rising inflation
Closing Bell: Saudi main index rises to 10,894
RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward trend for a third consecutive day this week, gaining 148.18 points, or 1.38 percent, to close at 10,893.63 on Tuesday.
The total trading turnover of the benchmark index stood at SR6.05 billion ($1.61 billion), with 144 listed stocks advancing and 107 declining.
The Kingdom’s parallel market Nomu also rose by 81.35 points to close at 23,668.29.
The MSCI Tadawul Index edged up 1.71 percent to 1,460.89.
The best-performing stock on the main market was Zahrat Al Waha for Trading Co., with its share price advancing 10 percent to SR2.75.
Shares of CHUBB Arabia Cooperative Insurance Co. increased 8.27 percent to SR23.04, while Abdullah Saad Mohammed Abo Moati for Bookstores Co. saw its stock climb 6.17 percent to SR50.60.
Conversely, the share price of Naseej International Trading Co. declined 9.90 percent to SR31.48.
On the announcements front, Arabian Drilling Co. said it secured three contract extensions for land rigs with energy giant Saudi Aramco, totaling SR1.4 billion and adding 25 active rig years to its backlog.
In a Tadawul statement, the company said one rig is currently operational, the second will begin operations by the end of January, and the third — currently suspended — is expected to resume operations in 2026.
Since November 2025, Arabian Drilling has secured seven contract extensions amounting to SR3.4 billion, representing 55 committed rig years.
The three contracts have durations of 10 years, 10 years, and five years, respectively.
“Securing a total of SR1.4 billion in new contracts and expanding our backlog by 25 rig-years demonstrates both the trust our clients place in us and our ability to consistently deliver quality and reliability,” said Ghassan Mirdad, CEO of Arabian Drilling, in a statement.
Shares of Arabian Drilling Co. rose 3.15 percent to SR104.70.
Separately, Alkhorayef Water and Power Technologies Co. said it signed a 36-month contract valued at SR43.35 million with National Water Co. to operate and maintain water networks, pumping stations, wells, reservoirs, and related facilities in Tabuk.
In October, Alkhorayef Water and Power Technologies Co. announced it had been awarded the contract by NWC.
In a Tadawul statement, the company said the financial impact of the deal began in the fourth quarter of 2025.
The share price of Alkhorayef Water and Power Technologies Co. declined 0.49 percent to SR120.70.
