SHANGHAI, May 19 —This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar bounced back on Wednesday, a day after its biggest daily loss in more than two months, as U.S. Federal Reserve chief Jerome Powell struck a more hawkish tone as the central bank battles to rein in surging inflation.

Powell pledged that the U.S. central bank would ratchet up interest rates as high as needed, including taking rates above neutral, to kill a surge in inflation that he said threatened the foundation of the economy.

The neutral rate is the level at which economic activity is neither simulated nor constrained.

Stock futures dipped in overnight trading Wednesday after the Dow Jones Industrial Average experienced its biggest one-day drop since 2020.

Futures on the Dow Jones Industrial Average shed about 30 points. S&P 500 futures eased 0.1% and Nasdaq 100 futures shed 0.2%.

The moves after hours came following a steep market sell-off as big-box retail earnings indicated inflation weighing on corporate profits.

The Dow shed more than 1,100 points in the average’s biggest decline since June 2020. The blue-chip average closed at its lowest level since March 2021. The S&P 500 lost about 4%, also its worst drop since June 2020. The Nasdaq Composite fell 4.7%.

Oil prices reversed course and fell over 2% on Wednesday after government data showed U.S. refiners ramped up output, easing worries of a supply crunch, and as traders took cues from a drop in equities market.

Brent crude was down $2.41 cents, or 2.4%, at $109.52 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.5 cents, or 2.2%, to $1 09.85 a barrel.

Brent settled below WTI on Tuesday - the first time since May 2020 - and was still unusually trading at a discount due to strong export demand and tightening U.S. crude stockpiles.

U.S. crude inventories fell by 3.4 million barrels last week, government data said, an unexpected drawdown as refiners ramped up output in response to tight product inventories and near-record exports that have forced diesel and gasoline prices to record levels in the United States. [EIA/S]

Capacity use on both the East Coast and Gulf Coast was above 95%, putting those refineries close to their highest possible running rates.

Gold futures were flat Wednesday as the dollar recovered slightly, piling pressure on greenback-priced bullion along with firm Treasury yields and an aggressive inflation stance by the U.S. Federal Reserve chief.

Futures were down just 0.04% at $1,818.10 per ounce. Spot gold, however, climbed 0.3% to $1,819.78.

The pan-European Stoxx 600 provisionally closed down by 1.1%, with tech stocks shedding 2.8% to lead losses as most sectors and major bourses entered negative territory.

U.K. inflation soared to a 40-year high of 9% in April as food and energy prices spiraled, official figures revealed Wednesday, escalating the country’s cost-of-living crisis.