- A measure of Asian shares fell more than 1% on Wednesday, led by hefty losses in technology firms, as hawkish rhetoric from Fed's Powell dampened risk appetite.
- Chinese technology businesses listed in Hong Kong plummeted more than 3%, with considerable weakening also seen in South Korean and Australian equities. US futures varied following a strong decline on Wall Street on Tuesday, when the S&P 500 fell the most in two weeks.
- A measure of dollar strength has remained near its peak this year, putting particular pressure on emerging markets. The yen continued to fall, the yuan traded close below the important level of 7 vs the dollar, and the currencies of Australia and New Zealand maintained the majority of their previous session's big losses.
- Powell indicated during senate testimony that authorities were ready to accelerate tightening and raise rates if inflation remained high. Short-end rates have skyrocketed as a result, prompting a shift higher in rate-hike bets.
- The 2-yr treasury yield surged above 5% on Wednesday, reaching its highest level since mid-2007. For the first time since 1981, the rate has now surpassed its 10-yr equivalent by a full percentage point. This is reflected in a deeply inverted yield curve, which could be a sign of impending recession.
