Dollar Breaks Higher and Shares Fall After Fed’s Powell Strikes Hawkish Tone

A woman wearing a face mask walks past a bank's electronic board showing the Hong Kong share index in Hong Kong, on Jan. 27, 2022. Kin Cheung/AP Photo

LONDON—Stocks fell on Thursday, U.S. two-year bond yields rocketed to 23-month highs and the dollar busted out of its recent range after the Federal Reserve stuck to plans for an interest rate rise in March and Chair Jerome Powell warned about inflation.

The Euro STOXX fell 0.19 percent while Germany’s DAX lost 0.52 percent.