The Dow is reeling in a perfect storm for stocks.

Investors dumped stocks on Thursday as more headwinds emerged for the US economy as the Federal Reserve continued to raise interest rates.

The Dow Jones Industrial Average lost 764 points, or 2.2 percent, as the broader markets suffered their worst session since November.

Dow Jones Industrial Average


IBM and Apple led the Dow’s salesoff, while Verizon remained in the green.

Ticker Security last one Change change %
IBM International Business Machines Corporation. 142.36 -7.50 -5.00%
APL APPLE INC. 136.50 -6.71 -4.69%
Viz VERIZON COMMUNICATIONS INC. 37.77 +0.32 +0.85%

The Nasdaq Composite shed more than 3.4%, weighed by Netflix and Meta.

Ticker Security last one Change change %
NFLX NETFLIX INC. 290.41 -27.42 -8.63%
META META PLATFORMS INC. 116.15 -5.44 -4.47%

And all 11 of the S&P’s largest sectors fell, led by tech, materials and industrials, while energy and utilities fell slightly.

Ticker Security last one Change change %
XLK Select the Technology Sector SPDR ETF 129.20 -5.00 -3.73%
XLB Select the Materials Sector SPDR ETF 79.43 -2.47 -3.02%
XLI Industry Select Sector SPDR ETF 98.54 -2.40 -2.37%

Weak readings in retail sales and manufacturing sent ripples through markets 24 hours after Fed policymakers said they would raise interest rates to 5.1% in 2023 in an effort to bring down 7.1% inflation.

Interest rate increases with a 50-basis point hike, but more signals to come

Fed Chairman Jerome Powell said during a press conference following the central bank’s 50-base rate on Wednesday that “the worst rate pain, the worst pain comes from not keeping rates higher and allowing inflation to take root in the economy.” – Point speed increase.

Bank of America strategists Michael Gapen, Mark Cabana and John Sheen jointly predict a recession next year.

“We agree and continue to expect a recession in 1H 2023 and higher unemployment than the median FOMC member projects,” they wrote. Currently, the Fed expects the unemployment rate to reach 4.6% next year, from 3.7% in November.

Get FOX BUSINESS on the go by clicking here



Leave a Reply

Your email address will not be published. Required fields are marked *