The Wall Street Bull in Manhattan, New York City. Source: Carlo Allegri/Reuters.
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  • Wall Street saw a sharp sell off overnight, as investors digest the Federal Reserve’s decision to hike rate’s the previous day
  • Concerns have now sprouted that it will not be enough to control inflation
  • Despite Federal Reserve Chairman Jerome Powell ruling out an increase of 75 basis points, traders increased bets on the hike to occur at the next meeting
  • The market will now turn its focus US Labor Department’s employment report, which will be released today
  • Investors are forecasting a slight decline in the unemployment rate, to 3.5 per cent

Wall Street saw a sharp sell off overnight, as investors digest the Federal Reserve’s decision to hike rate’s the previous day.

The stock market’s initial reaction to the news was mostly positive, with the S&P 500 index seeing its largest gain in almost a year.

However, concerns have now sprouted that it will not be enough to control inflation.

All three main Wall Street benchmarks fell lower with the Dow Jones shedding 3.12 per cent, S&P 3.56 per cent, and Nasdaq 4.99 per cent.

Despite Federal Reserve Chairman Jerome Powell ruling out an increase of 75 basis points, traders increased bets on the hike to occur at the next meeting.

The US dollar reversed yesterday’s losses, charging higher as many fled to it for safety.

The sell off carried over to Bitcoin, which saw its worst price in over two months. It is currently trading at $51,294.

The market will now turn its focus to the US Labor Department’s employment report, which will be released today.

This will reveal more economic indicators on the strength of the labour market. Investors are forecasting a slight decline in the unemployment rate, to 3.5 per cent.

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