Fed Hikes Interest Rates Amid Iran Conflict Tensions
The Federal Reserve raised interest rates to the 3.75%, 4% range in a unanimous 12-0 vote, citing inflation and oil prices remaining above $100 per barrel due to the ongoing conflict in Iran. Kevin Warsh, the Fed chair, emphasized the bank's goal of steering inflation to a 2% target.
The markets reacted with a broader sell-off in the bond market, driving Treasury yields higher across the board.
In a surprise move, Paramount (NASDAQ: PSKY) announced plans to relocate its headquarters out of Los Angeles, causing its stock to rise 5.6% before pulling back after reversing the decision.
The tech industry also saw a sharp pullback due to warnings from Anthropic CEO Dario Amodei about AI's dangers and the need for safety measures, affecting stocks like Nvidia and SoftBank.