After the Federal Reserve’s biggest rate hikes for decades since 1994, the US stock index plummeted and high-tech stocks in the spotlight plummeted.
The sale was serious as the Federal Reserve’s aggressive move raised a series of fears of tightening monetary policy from the world’s central banks, which could slow growth around the world. Switzerland and the United Kingdom have raised interest rates following the Fed’s 75 basis point increase on Wednesday.
Among the megacaps, Apple Inc, Microsoft Corp and Tesla Inc were among the biggest losers as investors dumped so-called growth stocks, which have driven much of the stock market recovery over the past two years.
“The sale is entirely tied to a shift in central bank policy,” said Ross Mayfield, investment strategy analyst at Baird, as central banks around the world are more hawkish than expected. There are new concerns about a synchronized global slowdown. ” Louisville, Kentucky.
“The Fed and other central banks are deliberately designing slowdowns, and every day this continues, the odds of hitting the soft landing they’re aiming for are getting harder and harder.”
Wells Fargo said the recession odds are now over 50% following the Fed’s decision. Other banks warning of increased risk of recession include Deutsche Bank and Morgan Stanley.
Although the Benchmark Index has fallen 22.9% year-to-date and is in a bear market, the Nasdaq Composite and S & P 500 Indexes are set to record their 10th week of decline in the last 11 weeks.
By noon, the Dow Jones Industrial Average fell 685.76 points (2.24%) to 69,982.77 and the S & P 500 fell 114.83 points (3.03%) to 3,675.16, both indices reaching their lowest levels since January 2021. Did.
The Nasdaq Composite Index was 10,671.77, down 427.39 points (3.85%).
All 11 major S & P sectors fell, while the energy and consumer discretionary sectors fell 4.1% and 4.4%, respectively. The defense sector performed well, with consumer staple foods down only 0.4%.
Among the major US banks, Wells Fargo led the loss with a 3.5% slide.
Retail Wal-Mart rose 0.8% and Target fell 1.8%.
The CBOE Volatility Index, also known as Wall Street’s Fear Gauge, has risen to 33.23 points.
The problem of decline was 8.56 to 1 in NYSE and 5.58 to 1 in Nasdaq, surpassing the starting lineup.
The S & P index recorded one new 52-week high and 93 new lows, while Nasdaq recorded six new highs and 670 new lows.
(Only the headings and images in this report may have been recreated by Business Standard staff. The rest of the content is automatically generated from the syndicated feed.)