Morning Report 7 Apr 22: Stocks retreat as investors consider more aggressive rate increase

US sharemarkets tumbled on Wednesday as the US Federal Reserve gave more guidance on how fast it will tighten monetary policy to fight inflation, raising concerns it may slow the US economy. At the close of trade, the Dow Jones index fell by 145 points or 0.4% after being down 364 points at session lows. The S&P 500 index slid 1% and the Nasdaq index shed 315 points or 2.2%. US treasuries were mixed on Wednesday after minutes from the latest Federal Reserve meeting signalled that Fed officials will reduce its bond holdings at a maximum pace of US$95 billion a month. US 10-year yields rose by 3 points to near 2.59%, but US 2-year yields fell by 3 points to near 2.48%.

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