*US equities fall as investors refocus on the prospects of more rate hikes*

*7 February 2023*
Nasdaq 100 Index 12464.51, (-0.87%)↓
S&P 500 Index 4110.98, (-0.62%)↓
Dow Jones Indus Avg Index 33891.02, (-0.1%)↓

US stocks fell amidst bets that the Fed will continue hiking interest rates following a stronger than expected jobs report. The *10-year Treasury yield* jumped to around 3.64%. 9 of 11 sectors closed in the red, with *Utilities* leading gains while *Communication Services* led shares lower. The *VIX (+6.71%)* increased to 19.55.

*Atlanta Fed President Raphael Bostic* called for *peak rates of 5.1%* and said that January's strong jobs report raises the possibility that the Fed will need to *hike interest rates to a higher peak than previously expected*. He added that the *Fed "may have to do a little more work"* if a stronger-than-expected economy persists. *US Treasury Secretary Janet Yellen* said that the probability of a recession is low as unemployment is at a 53-year low. Elsewhere, the US is reportedly planning a *200% tariff on Russian Aluminium* as soon as this week. Looking ahead, all eyes will be on *Fed Chair Jerome Powell's speech in Washington this Wednesday, at 01:40 Singapore Time.*

*Take-Two Interactive (-3.40%)* fell as the video game publisher missed top and bottom line estimates, and issued a weaker outlook for the current quarter. *Dell (-3.03%)* slid on reports it was slashing 6,650 jobs or 5% of its global workforce amidst weak PC demand. *Activision Blizzard (-4.86%)* tumbled as UK's competition watchdog is likely to oppose its $69B deal with Microsoft. *Tyson Foods (-4.61%)* fell on weaker than expected quarterly results as higher food prices led to a decline in meat consumption. *Newmont Goldcorp (-4.51%)* slumped on reports of a $16.9B bid to acquire rival Newcrest Mining. After hours, *Chegg (-21.73%)* plummeted on weaker than expected guidance for 2023. Pinterest (-1.61%) fell after missing sales estimates.