Wall Street Today | Fed Gets New Path to Go Big as Job Openings, Confidence Surprise

Three regional Fed presidents reiterated in separate remarks on Tuesday that curbing the hottest prices in almost 40 years was their top priority, with New York Fed chief John Williams agreeing interest rates probably need to advance above 3.5% at some point to achieve their goal.

The argument for an early dovish pivot by the Federal Reserve and other major central banks is now "clearly out of the window," Michael Strobaek, global chief investment officer at the European bank said on Monday. Markets are now confronted with slowing growth, rising recession risks and elevated inflation, and "the next few months are thus likely going to be painful" .

US jobs openings and a consumer confidence gauge both topped forecasts, pointing to strength in household and labor demand that risks sustaining inflationary pressures and raises the prospects for a third straight 75 basis-point interest-rate hike by the Federal Reserve.

Oil tumbled after Iraq's state marketing company said exports haven't been affected by violent clashes in Baghdad while low liquidity exacerbated price moves. West Texas Intermediate fell 5.5% to settle below $92 a barrel as risk-off sentiment weighed down most commodities.