His comments came on the heels of remarks by Fed governor Christopher Waller that the US central bank may have to quicken the wind-down of its asset purchases and pivot off near-zero interest rates in light of the surge in inflation.
While stocks are hovering near records, propped up by robust earnings, a virus resurgence could stall the economic recovery at a time when inflation is raging.
Austria became the first western European country to impose widespread restrictions. Parts of Germany also closed non-essential businesses, while the Netherlands has already ordered shops and bars to close early.
“It’s been another week of stocks defying gravity in a tense environment,” said Callie Cox, senior investment strategist at Ally Invest. “The road hasn’t been easy, though. Investors are still digesting the risk of runaway inflation, along with a COVID spike and a new wave of restrictions in Europe.”
President Joe Biden’s signature plan to expand the social safety net, address climate change and rewrite tax policies passed the House as Speaker Nancy Pelosi united fractious Democrats to send the legislation to the Senate, where its fate remains uncertain.
Oil extended its weekly slide amid renewed prospects for lockdowns just as key consuming nations look to add emergency supply to the market.
Some corporate highlights:
COVID-19 booster shots from Pfizer and Moderna received unanimous backing for use in all US adults from public-health advisers.
Boeing is further slowing down the production of 787 Dreamliners, Dow Jones reported, citing people familiar with the matter.
Foot Locker reported sales that missed estimates as a supply-chain crunch pressures the sneaker retailer ahead of the holiday shopping season.
Some of the main moves in markets:
The S&P 500 fell 0.1 per cent as of 4.01pm New York time
The Nasdaq 100 rose 0.5 per cent
The Dow Jones Industrial Average fell 0.7 per cent
ASX futures were down 45 points or 0.6 per cent to 7351 at 8am AEDT
The Bloomberg Dollar Spot Index rose 0.4 per cent
The euro fell 0.7 per cent to $US1.1290; the British pound fell 0.4 per cent to $US1.3442; the Japanese yen rose 0.2 per cent to 113.99 per US dollar
The Australian dollar was 0.6 per cent lower at US72.32¢ at 8.15am AEDT
Bitcoin was 0.1 per cent lower over the last 24 hours at $US57,838.70 near 8.20am AEDT on bitstamp.net
The yield on 10-year Treasuries declined five basis points to 1.54 per cent
Germany’s 10-year yield declined seven basis points to -0.34 per cent; Britain’s 10-year yield declined five basis points to 0.88 per cent
West Texas Intermediate crude fell 3.7 per cent to $US76.10 a barrel
Benchmark oil fell 3.5 per cent to $US78.41 a barrel
Gold futures fell 0.7 per cent to $US1851.20 an ounce
The spot price of iron ore, as priced by Fastmarkets MB, rose 5.1 per cent to $US91.69 a tonne