- Hezbollah heir apparent Safieddine out of contact after strikes
- Liverpool stay top of Premier League as Arsenal, Man City win
- In dank Tour of Emilia, Pogacar shines in rainbow jersey
- DR Congo launches mpox vaccination drive, hoping to curb outbreak
- Trump returns to site of failed assassination
- Careless Leverkusen held to Bundesliga draw
- O'Brien's 'superstar' Kyprios posts landmark win on Arc weekend
- Liverpool suffer Alisson injury blow
- Habosi helps Racing beat Vannes before Auradou's playing return
- Thousands march in London in support of Palestinians, 1 year after Oct 7
- Israel readying response to Iran missile attack
- Schutt, Mooney help Australia beat Sri Lanka in Women's T20 World Cup
- Liverpool extend Premier League lead with win at Palace
- Djokovic 'shakes rust off' to make third round of Shanghai Masters
- 'Imperfect' PSG fighting on all fronts - Luis Enrique
- Struggling Pakistan look to thwart adaptable England
- Child 'trampled to death' in asylum seekers' Channel crossing: minister
- Gauff fights back to set up Beijing final against Muchova
- Guardiola claims Premier League won't delay season for Man City
- Israel to mark October 7 attack as Gaza war spreads
- Gauff fights back to reach China Open final
- Recovering Stokes ruled out of first Pakistan Test
- Hezbollah battles troops on border as Israel pounds Lebanon
- Alcaraz, Sinner breeze into third round of Shanghai Masters
- Bagnaia wins Japan MotoGP sprint to cut Martin's lead
- Alcaraz breezes into third round of Shanghai Masters
- Gaza cultural heritage brought to light in Geneva
- 'Bullet for democracy': Trump returns to site of rally shooting
- Italy targets climate activists in 'anti-Gandhi' demo clampdown
- South Korean cult-horror series 'Hellbound' returns at BIFF
- Nepalis fear more floods as climate change melts glaciers
- Honduras arrests environmentalist's alleged murderer
- Padres pitcher Musgrove needs elbow surgery
- Supreme Court lets stand rules to curb mercury, methane emissions
- Boston beat Denver in NBA exhibition season opener, but Jokic says omens are good
- Chagos diaspora angry at lack of input on islands' fate
- Biden says 'not confident' of peaceful US election
- US trade chief defends tariff hikes when paired with investment
- Lukaku stars as Napoli beat Como to hold Serie A top spot
- Ohtani set for MLB playoff debut as Dodgers face Padres
- Pogba's drug ban cut to 18 months from four years
- Devine leads New Zealand to big win over India in Women's T20 World Cup
- Bosnia floods kill 16 people
- EU court blocks French ban on vegetable 'steak' labelling
- Prosecutors seek dismissal of rape charges against French rugby players
- Meta AI turns pictures into videos with sound
- Bolivia's Morales says claims he raped a minor are a 'lie'
- MLB Reds hire two-time champion Francona as manager
- Daniel Maldini receives first Italy call-up for Nations League
- US dockworkers return to ports after three-day strike
Hawkish Powell sends US indices lower despite resurgent airline shares
US stocks tumbled while the dollar rallied Thursday following hawkish comments from the head of the Federal Reserve that exacerbated worries over higher interest rates, offsetting a lift from a resurgent airline industry.
With bourses in Paris and Frankfurt winning solid gains, Wall Street equities had opened higher following good results from Tesla and upbeat comments from leading airlines.
But US stock markets reversed course at mid-session, and ended decisively lower as the yield on the 10-year US Treasury note rose above 2.9 percent.
Fed Chair Jerome Powell, who has signaled the US central bank will have to move more aggressively to counter record US inflation, explicitly said a half-point interest rate increase is "on the table" for next month's policy meeting.
The comments followed remarks from a top European Central Bank that opened the door to faster interest rate hikes.
"Today, you can basically say that for stocks and bonds, it's all about the ECB and the Fed," said LBBW's Karl Haeling.
Major US indices all finished down more than one percent, while the dollar pushed higher against the euro and other currencies.
But forecast by United Airlines and American Airlines for surging travel demand as the pandemic impact fades helped boost airline shares in Europe and the United States.
Shares in European airlines were flying high. British Airways parent IAG soared 6.3 percent and shares in low-cost rival EasyJet jumped 4.9 percent in afternoon trading in London.
"The aviation sector is flying higher on expectations of a bumper quarter, after United Airlines posted record guidance for the second quarter," City Index senior markets analyst Fiona Cincotta told AFP.
The aviation sector was ravaged by the pandemic that erupted in early 2020. Surging oil prices amid the fallout from the Russian war have also acted as a headwind.
United Airlines forecast "the strongest second-quarter revenue guidance in company history" despite logging another Covid-induced loss for the first quarter.
American Airlines, meanwhile, reported another quarterly loss on Thursday, but said a recent sharp improvement in bookings should enable it to achieve profitability in the second quarter.
Shares of United soared 9.3 percent, while American gained 3.8 percent.
Earlier, stock markets in Hong Kong and Shanghai fell sharply on heightened anxiety over China's renewed Covid lockdowns and curbs on tech companies.
Tokyo, however, rallied on optimism over a falling yen, which boosts exporters.
- Key figures around 2125 GMT -
New York - Dow: DOWN 1.1 percent at 34,792.76 (close)
New York - S&P 500: DOWN 1.5 percent at 4,393.66 (close)
New York - Nasdaq: DOWN 2.1 percent at 13,174.65 (close)
Frankfurt - DAX: UP 1.0 percent at 14,502.41 (close)
Paris - CAC 40: UP 1.4 percent at 6,715.10 (close)
London - FTSE 100: FLAT at 7,627.95 (close)
EURO STOXX 50: UP 0.3 percent at 3,781.13
Tokyo - Nikkei 225: UP 1.2 percent at 27,553.06 (close)
Hong Kong - Hang Seng Index: DOWN 1.3 percent at 20,682.22 (close)
Shanghai - Composite: DOWN 2.3 percent at 3,079.81 (close)
Euro/dollar: DOWN at $1.0840 from $1.0853 late on Wednesday
Dollar/yen: UP at 128.35 yen from 127.86 yen
Pound/dollar: DOWN at $1.3029 from $1.3068
Euro/pound: UP at 83.14 pence from 83.05 pence
Brent North Sea crude: UP 1.4 percent at $108.33 per barrel
West Texas Intermediate: UP 1.6 percent at $103.79 per barrel
burs-jmb/caw
A.Magalhes--PC