Stocks Opened Lower on Fed Rate-hike Talk

U.S. stocks opened sharply lower on Friday, as investors grew cautious after hawkish comments from Federal Reserve officials. The Dow Jones Industrial Average lately dropped 154.88 points, or 0.84%, to 18,325.03. The S&P 500 shed 22.11 points, or 1.01%, to 2,159.19. The Nasdaq Composite dropped 47.63 points, or 0.91%, to 5,211.85.

Boston Fed President Eric Rosengren said Friday backed gradual interest rate hikes, saying that waiting too long risks some asset markets like commercial real estate “become too ebullient.”

Wells Fargo & Co., the largest U.S. bank by market value, must pay $185 million related to a regulatory enforcement action over “widespread illegal practice” around account openings, sales targets and compensation incentives, according to regulators and prosecutors.

Chipotle Mexican Grill has agreed to financially settle with more than 100 customers who were sickened after eating its food, Reuters reported Thursday, citing consumer lawyers.

Some 46 million people in Britain could potentially benefit from a legal case brought against Mastercard demanding 14 billion pounds ($19 billion) in damages for allegedly charging excessive fees, according to court documents filed in London.