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    Market Slides on Fears of Aggressive Fed Rate Hikes; CSCO, ROKU Report Positive Results


    Investors sent stocks lower on Thursday as fears of an overly aggressive Federal Reserve rate hike weighed on markets. The Nasdaq Composite (COMP.IND) fell 1.6%, the benchmark S&P 500 (SP500) declined by 1.3%, and the Dow (DJI) slid 1.4%.[0] This came after St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester backed more aggressive action from the central bank to bring down inflation.[1]

    Despite the market's overall decline, some stocks managed to rise after better-than-expected quarterly results and profit guidance. Cisco Systems (CSCO) was the leader in the S&P 500, climbing 5.2% after the network equipment maker reported fiscal second-quarter earnings of 85 cents per share on $13.6 billion in revenue, more than analysts were expecting.[2] CSCO also raised its full-year outlook and its dividend.[1]

    Roku Inc (ROKU) also saw an impressive pre-market surge, climbing about 10% after the company reported upbeat Q4 results and posted a better-than-expected forecast for the current quarter.[3]

    There are concerns that the Federal Reserve may increase interest rates more than what is currently expected and keep them elevated for a longer period of time, due to recent economic data.[4] S&P Global's manufacturing and services purchasing managers’ indices for February are due at 9:45 a.m.[5] EST and are expected to show that activity, although improving, continued to contract.[5] The market is now pricing in a quarter-point increase in interest rates at each of the central bank's next three gatherings.[6]

    On Tuesday, the Commerce Department reported that retail sales had increased by 3% in January, reversing the two months prior which had seen a decline. This, in addition to higher-than-anticipated consumer prices, has unsettled investors who fear the Federal Reserve may raise interest rates further.[7] Meanwhile, the yield on the benchmark 10-year Treasury note inched up 1 basis point to 3.87% and bitcoin (BTC-USD) rallied by 8.5% in the last 24 hours to US$24,065.86.

    0. “Nasdaq, S&P, Dow slip to kick off shortened trading week” Seeking Alpha, 21 Feb. 2023,

    1. “Stock Market Today: Hot Inflation Data Sends Stocks Lower” Kiplinger's Personal Finance, 16 Feb. 2023,

    2. “Markets Nosedive on Another Surprising Inflation Report” Investopedia, 16 Feb. 2023,

    3. “Markets Today: Stock Index Futures Drop as Global Bond Yields Climb” Barchart, 17 Feb. 2023,

    4. “U.S. Stocks Seeing Further Downside After Early Sell-Off” RTTNews, 21 Feb. 2023,

    5. “Nasdaq, S&P 500 Futures Slump As Traders Weigh-In Retail Earnings, Uncertain Economic Backdrop – Invesco” Benzinga, 21 Feb. 2023,

    6. “Stock Market Today: Stocks Close Mostly Lower Amid Rate-Hike Worries” Kiplinger's Personal Finance, 17 Feb. 2023,

    7. “S&P Futures Tick Lower Ahead of Key U.S. PPI Data” Barchart, 16 Feb. 2023,

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