The stock market on Wall Street decreased by over 1% after Jerome Powell indicated rate hikes.

On March 8, 2022, the three major US stock indexes closed sharply lower after Federal Reserve Chair Jerome Powell told Congress that the central bank will likely need to raise interest rates more than previously expected to control stubbornly high inflation. The Dow Jones Industrial Average fell the most, losing 1.7%, while the S&P 500 and Nasdaq Composite fell 1.5% and 1.3%, respectively. Powell's comments followed recent data showing an unexpected increase in inflation in January and a larger-than-expected jobs gain for the month. Traders raised their bets for a 50-basis-point rate hike in March after Powell's comments, with money market futures pricing in a more than 70% chance of such a move. All 11 major S&P sectors closed lower, led by financially sensitive sectors which finished down 2.5%. The yield on two-year Treasury notes, which reflects short-term rate expectations, hit 5% for the first time since July 2007.