Investors dumped stocks on Thursday as more headwinds loom for the US economy as the Federal Reserve remains on course to raise interest rates.
The Dow Jones Industrial Average lost 764 points, or 2.2 percent, as the broader markets faced their worst session since November.
Dow Jones Industrial Average
IBM and Apple continued to sell off the Dow, while Verizon remained in the green.
|IBM||INTERNATIONAL BUSINESS MACHINES CORP.||142.36||-7.50||-5.00%|
|VZ:||VERIZON COMMUNICATIONS INC.||37.76||+0.30||+0.80%|
The Nasdaq Composite fell more than 3.4%, weighed down by Netflix and Meta.
|AFTER:||META PLATFORMS INC.||116.15:||-5.44||-4.47%|
And all 11 of the S&P’s largest sectors declined, led by technology, materials and industrials, while energy and utilities declined the least.
|XLK:||TECHNOLOGY SELECT SECTOR SPDR ETF||129.20:||-5:00||-3.73%|
|XLB:||MATERIALS SELECT SECTOR SPDR ETF||79.43:||-2.47||-3.02%|
|XLI:||INDUSTRIAL SELECT SECTOR SPDR ETF||98.54:||-2.40||-2.37%|
Weak readings on retail sales and manufacturing rattled markets 24 hours after Fed policymakers said they would raise interest rates to 5.1% in 2023, higher than the initial forecast of 7.1% inflation. in order to reduce
FED SLOWS RATE HIKE BY 50 BAPS, BUT WARNS MORE FIRST
“The biggest pain, the worst pain, will come from not being able to raise interest rates and we allow inflation to take root in the economy,” Fed Chairman Jerome Powell said Wednesday at his news conference after the central bank’s 50-basis-rate meeting. – interest rate increase.
Bank of America strategists Michael Gapen, Mark Cabana and John Sheen jointly forecast a recession next year.
“We agree and continue to look for a recession in the first half of 2023 and a steeper increase in the unemployment rate than the average FOMC members project,” they wrote. The Fed currently expects the unemployment rate to be 4.6% next year, down from 3.7% in November.
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