The Dow Jones Industrial Average falls 2.5% to 29,888.74 units; the S&P 500 yields 3.5%, to 3,657.97 units; and the Nasdaq Composite fell 4.4% to 3,657.97 units.
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.
The Actions of mega-cap growth companies Amazon.com, Microsoft Corp, Apple Inc and Tesla Inc they sink between 2.5% and 6%, also pressured by the increase in yields on US Treasury bonds.
The benchmark index snapped a five-session losing streak on Wednesday, after the Federal Reserve’s rate hike of 75 basis points was in line with market expectations.
Stocks were under pressure for most of the year due to growing concerns about rising inflation and borrowing costs, and the latest projections from the central bank about the slowdown in the US economy and the increase in unemployment in the coming months only fuel these 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 looming over 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% so far this year and is in a bear market as investors face 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
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