Dow Drops 600 Points Intraday as Fed Signals Hikes Rattle Markets

The Dow dropped more than 600 points intraday after the Fed's rate outlook and the chair's press remarks raised fears of hikes this year; a hawkish signal from the world's biggest economy reprices risk instantly. The value here is the chain: Fed hike expectations lift the dollar and pressure US stocks, which weighs on the yen and tightens global markets. US policy is never someone else's problem, it flows through FX and capital into Japanese stocks, the yen and Taiwan investors' positions. The task now is to factor in that the US is also hiking; the Fed's language, dot plot and data will drive global risk assets in the weeks ahead.