[New York Stock Market] Decline on Fed Official's Hawkish Remarks... Dow Down 0.31%

The New York stock market fell due to concerns over economic slowdown and tightening as hawkish remarks suggesting further interest rate hikes by the Federal Reserve (Fed) continued.

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On the 22nd (Eastern Time), the three major indices at the New York Stock Exchange (NYSE) started the session with gains but ended the day with a decline for the fourth consecutive trading day in the latter part of the session.

On that day, the Dow Jones Industrial Average closed at 33,963.84, down 0.31% from the previous session. The Standard & Poor's (S&P) 500 index fell 0.23% to 4,320.06, and the Nasdaq index dropped 0.09% to 13,211.81. The Dow fell 1.9% for the week, while the S&P 500 and Nasdaq indices declined 2.9% and 3.6%, respectively, over the week.

Investors focused on the Fed's indication of willingness to raise interest rates further this year and the fact that U.S. Treasury yields hit multi-year highs. The 10-year U.S. Treasury yield reached 4.51% intraday, marking the highest level since 2007, and the 2-year yield also rose to 5.20%, the highest since 2006.

Fed officials collectively made hawkish remarks emphasizing the need for additional rate hikes, putting downward pressure on stock prices. Susan Collins, President of the Boston Fed, said in a speech that "interest rates may remain somewhat higher and longer than previously projected," and "additional tightening is certainly not off the table."

The expansion of the strike in the U.S. auto industry did not significantly shake auto-related stocks but contributed to worsening investor sentiment. Sean Fain, President of the United Auto Workers (UAW), announced in a speech to union members that the strike would expand from noon that day to include 38 parts distribution centers (PDCs) of General Motors (GM) and Stellantis. Ford was excluded from this strike expansion due to progress in negotiations.