Wall Street equities ticked lower on Thursday, while the dollar reached its highest level since July 2020 after the US central bank a day earlier signalled that it would raise interest rates as soon as March.

The benchmark S&P 500 share index closed the day 0.5 per cent lower, while the technology-heavy Nasdaq Composite fell 1.4 per cent. Both indices had a brief period of relief on Thursday morning, but by afternoon the selling spurred by the hawkish message from Jay Powell, Federal Reserve chair, resumed. The S&P has lost about 9 per cent this year.

Powell on Wednesday declined to rule out raising interest rates at every policy meeting this year in order to combat inflation. Markets are now pricing in between four and five quarter-point rate increases this year, with the first coming in March.