US shares experience worst day since March on risk aversion

US equities finished the week with substantial losses, reflecting a gloomy market mood amid concerns that the Fed would hike rates aggressively and high US Treasury yields. The S&P 500, the Dow Jones Industrial, and the tech-heavy Nasdaq Composite nose-dived recording losses between 2.6% and 2.8%, each sitting at 4,271.78, 33,811.40, and 12,839.29, respectively.

The market sentiment finished downbeat as the Federal Reserve prepared to lift rates to the 1% threshold. US central bank officials crossed the wires throughout the week and expressed that they favor a 50-bps lift to the Federal Funds Rate (FFR) at the May 4-5 meeting. It is expected to be a unanimous decision, as Fed Chair Powell gave the green light on Thursday, saying that a 50-bps increase is “on the table.”

In the meantime, the greenback remains in the driver’s seat, as depicted by the US Dollar Index, rising 0.49%, sitting at 101.118, while US Treasury yields, led by the 10-year benchmark note, finished flat at 2.903%.