Dow drops points as Wall Street encounter higher rates for longer woes

Market volatility, on Wednesday, is low because of correlation going down. The Dow Jones Industrial Average fell as Wall Street fought to recover from Tuesday’s selloff, triggered by comments from Fed Chair Jerome Powell signaling higher interest rates for longer.

The Dow fell 202 points, or 0.6%, dragged down by declines from Merck and McDonald’s. The S&P 500 traded 0.2% lower, while the Nasdaq Composite was flat.

The latest job market data further fueled investor concern that bigger rate increases may be ahead. Data showed that job openings fell less than expected in January, while a stronger-than-expected February private payrolls report affirmed that the economy is standing strong despite the central bank’s hiking. The findings precede Friday’s February jobs data after January’s blockbuster number.

US Stocks are coming off a down session after comments from Powell’s Senate testimony cautioned lawmakers that the central bank’s terminal rate will likely be higher than previously anticipated due to stubbornly high economic data. Commentary continued on Wednesday as Powell spoke before the House Financial Services Committee.