By Stephen Culp

NEW YORK, June 21 (Reuters)Wall Avenue extended its offer-off on Wednesday as U.S. Federal Reserve Chairman Jerome Powell’s congressional testimony strengthened the central bank’s campaign to rein in inflation as he hinted at the probability of further interest charge hikes.

All 3 main U.S. stock indexes were being on keep track of to notch their third straight every day declines, with interest price sensitive momentum shares weighing the tech-laden Nasdaq down most.

Tesla Inc TSLA.O, along AI-relevant stocks this kind of as Microsoft Corp MSFT.O and Nvidia Corp NVDA.O ended up the heaviest drags.

In his testimony right before the U.S. House Money Services Committee, Powell reiterated the fact that the central bank remains “strongly dedicated to bringing inflation again down to our 2% goal,” and stated it would be “a rather good guess” that foreseeable future price hikes are in the playing cards if the economic climate carries on on its existing route.

“Powell is not going to diverge from what he said at the push convention past week the Fed is heading to be hawkish until eventually inflation reaches 2%,” explained Peter Cardillo, chief market economist at Spartan Funds Securities in New York. “The Fed is trying to keep this tricky talk going because they really do not want the marketplaces to get about enthusiastic.”

At last look, monetary marketplaces have priced in a 79% likelihood of another 25 basis level desire fee hike at the conclusion of July’s monetary plan assembly, according to CME’s FedWatch software.

At 2:00PM ET, the Dow Jones Industrial Average .DJI fell 17.9 points, or .05%, to 34,035.97, the S&P 500 .SPX lost 13.67 details, or .31%, to 4,375.04 and the Nasdaq Composite .IXIC dropped 124.88 factors, or .91%, to 13,542.41.

Amid the 11 major sectors of the S&P 500, electrical power stocks .SPNY led the gainers, rebounding from its greatest daily plunge in about a month. Communication solutions .SPLRCL and tech .SPLRCT experienced the major percentage drops.

Tesla Inc TSLA.O was the major drag on the S&P 500 and the Nasdaq, sliding 4.6%. Barclays downgraded its ranking on the stock to “equal bodyweight” from “chubby,” saying the electric powered automaker’s current rally was much too sharp relative to fundamentals.

Offer delivery firms FedEx FDX.N and United Parcel Assistance Inc UPS.N dropped 2.7% and 2.1%, respectively, soon after FedEx posted disappointing quarterly earnings and said waning international demand from customers is pressuring its profit margins.

Crypto corporations, such as Coinbase COIN.O, Riot Platforms RIOT.O, Marathon Digital MARA.O and Little bit Digital BTBT.O, attained amongst 1.6% and 5.2%, as Bitcon BTC=BTSP breeched the $30,000 level.

Declining troubles outnumbered advancing kinds on the NYSE by a 1.01-to-1 ratio on Nasdaq, a 1.31-to-1 ratio favored decliners.

The S&P 500 posted 14 new 52-7 days highs and no new lows the Nasdaq Composite recorded 67 new highs and 104 new lows.

(Reporting by Stephen Culp Additional reporting by Shubham Batra, Johann M Cherian and Ankika Biswas in Bengaluru Enhancing by Aurora Ellis)

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