Stocks reversed lower on Thursday as another blowout quarterly earnings report from Nvidia (NVDA) couldn’t overcome new comments from the Federal Reserve suggesting interest rates will need to remain elevated for a long period of time to bring inflation down.
The Nasdaq Composite (^IXIC) closed Thursday’s trading session down nearly 1.9% while the S&P 500 (^GSPC) fell 1.35%. The Dow Jones Industrial (DJI) sank about 1%, or 373 points.
In an interview with Yahoo Finance’s Jennifer Schonberger on Thursday, Boston Fed President Susan Collins said it is “extremely likely” the central bank will need to hold interest rates high to bring down inflation.
“I think that it’s going to take some time to really be sure that we are seeing the sustained realignment of demand and supply that is needed in order to bring inflation back on a path that will get back to 2% [in] a reasonable amount of time,” Collins said in an interview from the Jackson Hole Economic Symposium in Wyoming.
h/t TBSchemer