US stocks fall after giving up early gains

US stocks launched today's session higher, however positive sentiment quickly faded away and major Wall Street indices pulled back to yesterday's lows. The Dow Jones lost 0.38% after rising more than 500 points earlier in the session. The S&P 500 and Nasdaq Composite slipped 0.30% and 0.20%, respectively as market digested another set of hawkish comments from Cleveland Federal Reserve Bank President Loretta Mester and New York Fed President John Williams, which pointed out that 50 bps rate hikes are likely for the next couple of Fed meetings. Fed's Mester also believes that the current hiking pace seems about right, however she does not want to rule anything out on hikes for the second half of the year.  It seems that concerns about the implications of an aggressive tightening on a backdrop of soaring inflation and a challenging growth outlook will continue to weigh on market sentiment.  

Meanwhile, Treasury yields eased from multi year highs and the dollar strengthened. The benchmark 10-year Treasury note yield, which reached its highest level since late 2018 yesterday, fell to 2.95% mark.

US500 pulled back towards yesterday lows at 3965 pts. Should break lower occur, downward move may accelerate towards next major support at 3800 pts which coincides with 38.2% Fibonacci retracement of the upward wave launched in March 2020. On the other hand, if buyers manage to regain control, another upward impulse towards key resistance at 4180 pts may be launched. Source: xStation5