All 11 major S&P sectors fell in morning trading. The energy and consumer discretionary sectors were the ones with the greatest declines, with a decrease of 4.2% and 3.6%, respectively.
Stocks of mega-cap growth companies Amazon.com, Microsoft Corp, Apple Inc and Tesla Inc they sank between 2.5% and 6%, also pressured by the increase in yields on US Treasury bonds.
All components of the Dow were in the red, while all 496 components of the S&P 500 Index fell.
The benchmark index snapped a five-session losing streak on Wednesday, after the Federal Reserve’s rate hike of 75 basis points matched market expectations.
Stocks have been under pressure for most of the year due to growing concerns about rising inflation and borrowing costs, and the latest central bank projections of a slowing US economy and rising unemployment in the US. the coming months only fuel those concerns.
“We see it becoming more and more likely that a recession and rising unemployment will be needed to control inflation: with such a bleak macroeconomic outlook hanging over the markets,” said Geir Lode, head of global equities at Federated Hermes Ltd.
Wells Fargo said the odds of a recession now stand at more than 50%, following the Fed’s decision.
The S&P 500 has lost 22.6% year-to-date and is in a bear market as investors grapple with a sharp slowdown in growth. The Nasdaq Composite Index and the S&P 500 were set to post their 10th weekly decline in the last 11 weeks.
Among major US banks, Morgan Stanley shares led the losses with a 4% drop.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
