S&P 500 Breaks Winning Streak As Powell Warns Of More Interest Rate Hikes Ahead; Bitcoin Rallies Over 20%

The S&P 500 fell on the week in the wake of Fed Chair Jerome Powell's testimony to Congress that FOMC members agree that "it will be appropriate to raise interest rates somewhat further by the end of the year."

The drop was the index's largest loss in all of June, breaking a weeks-long winning streak for the general market gauge. Other indexes also saw a week of losses. The Dow Jones was also down 2.1% on the week and the tech-heavy Nasdaq Composite lost 1.01%.

The tech sector saw $2 billion in outflows in the five trading days ending Wednesday, June 21, the largest in 10 weeks.

Powell's words were taken with disappointment after the Federal Open Market Committee's decision to pause interest rate hikes for the first time since March 2022, spreading a wave of optimism for investors across sectors.

Further raises to interest rates are expected to come from central banks across the globe as inflation proves sticky for most economies.

Washington, D.C. received a high-profile visit from India’s Prime Minister Narendra Modi, who was welcomed with great emphasis by the Biden administration. President Joe Biden said the relationship between the U.S. and India “will be one of the defining relationships of the 21st century” as India rises to the top as one of the world's most influential economic and military powers.

FedEx Corp.'s FDX earnings call caused mixed emotions as the company reported a revenue drop of 10.2% ($21.9 billion) for the fourth quarter, coming in below analyst estimates of $22.7 billion. Earnings of $4.94 per share beat estimates of $4.89 per share.

Remember Bitcoin? The cryptocurrency embarked on a massive rally, gaining nearly 20% this week, breaking the psychological $30,000 barrier and reaching $31,200 after the announcement of new crypto initiatives by several financial services institutions.

What's Next: On Tuesday, June 27, the New Home Sales report will lend a view into the real estate market for the month of May. 

On Friday, the Personal Consumption Expenditures index will give a window into the Fed's preferred inflation measure. 

Walgreens WBA reports earnings Tuesday, while semiconductor chips manufacturer Micron Technologies MU will release its results on Wednesday, along with food giant General Mills GIS. Sports apparel colossus Nike NKE will post earnings Thursday, while beverage giant Constellation Brands STZ reports Friday.