U.S. Index Futures, Commodities Drop; Dollar Rises: Markets Wrap

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(Bloomberg) — U.S. stock-index futures slumped and the dollar strengthened as nervousness about U.S. interest-rate hikes spread through global markets.

S&P 500 contracts lost 0.3%, while Europe’s Stoxx 600 Index fell for the first time in 10 days. Emerging markets and commodities were lower, while bank shares advanced. The Bloomberg Dollar Spot Index rose for a fifth day. Miners Freeport-McMoran Inc. and Newmont Corp. declined in premarket New York trading.

Fed Chair Jerome Powell acknowledged the risks of inflation and said officials had begun a discussion about scaling back bond purchases. Policy makers’ dot plot showed they anticipate two rate increases by the end of 2023, a faster-than-expected pace of tightening. This marked a turning point in the Fed’s communication to global markets, which had so far been ultra-dovish.

“We’ve gotten to a point that has everyone feeling slightly less comfortable in assuming that the Fed is going to be…

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