Asian Stocks Sink, Wall Street Plunges After Fed Official Signals Paused Rate Cut Amid Inflation Worries
• Asian shares mostly declined Friday after a U.S. Federal Reserve official said the central bank might not cut interest rates this year due to inflation concerns.
• Japan’s Nikkei 225 dove 2.4% and Hong Kong’s Hang Seng lost 0.8% amid a broader sense of market pessimism.
• Wall Street dropped sharply Thursday, with the S&P 500 falling 1.2% for its worst day in 7 weeks, after the Fed official's comments.
• The Dow swung 530 points lower after reversing an earlier 300 point gain as oil price spikes and falling bond yields added to market jitters.
• Traders scaled back predictions for Fed rate cuts this year from 3 to potentially zero after recent hotter-than-expected economic data.