US stocks mixed with S&P 500 hitting a new low in 2022 as Fed officials defend hawkish policy

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US stocks mixed with S&P 500 hitting a new low in 2022 as Fed officials defend hawkish policy
Drew Angerer/Getty Images
  • US stocks ended mixed on Tuesday with the S&P 500 falling to a new 2022 low intraday as Fed officials defended their hawkish stance.
  • Tuesday's decline marked the sixth consecutive fall for the the S&P 500 and Dow Jones Industrial Average.
  • Fed President Neel Kashkari said the central bank's current pace of hiking interest rates to tame inflation is "appropriate."
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US stocks closed mixed on Tuesday, with the S&P 500 hitting a new 2022 low intraday as the broad index and the Dow Jones Industrial Average fell for a sixth day in a row.

During the trading session, the S&P 500 dipped below its mid-June low of 3,636 before paring losses. Tuesday's decline reversed early morning gains and came as Fed officials defended their hawkish stance as they continue to see further interest rate hikes in the future.

Chicago Fed President Charles Evans told CNBC on Tuesday that he is "cautiously optimistic" the US economy can avoid a recession, and said he's "a little nervous" about the Fed raising interest rates too quickly.

Meanwhile, Minneapolis Fed President Neel Kashkari said at a Wall Street Journal event that the central bank's current rate hikes are "appropriate" and that there is unanimity among policymakers that inflation remains a big risk to the economy that they need to get under control.

The market currently expects another 75-basis-point rate hike at the Fed's November meeting.

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Here's where US indexes stood at the 4:00 p.m. ET close on Tuesday:

Here's what else is happening this morning:

In commodities, bonds and crypto:

  • West Texas Intermediate crude oil jumped 2.40% to $78.55 per barrel. Brent crude, oil's international benchmark, rose 2.70% to $86.33.
  • Gold rallied 0.11% to $1,635.20 per ounce.
  • The yield on the 10-year Treasury jumped six basis points to 3.98%.
  • Bitcoin fell 5.03% to $19.089, while ether fell 4.43% to $1,324.
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