Wall Street sinks as recession fears pervade the market

US stock indexes tumbled on Thursday, with tech stocks leading the trend, following the Federal Reserve’s biggest interest rate hike since 1994 to combat high inflation dragging decades, raising recession fears.
The sell-off became severe as the Fed’s aggressive move raised concerns that a series of monetary tightening from global central banks could slow growth around the world. Switzerland and Britain raised interest rates after the Fed raised 75 basis points on Wednesday.
Among giants, Apple, Microsoft Corp and Tesla were among the biggest losers as investors dumped the growth stocks that fueled much of the stock market rally. securities in the past two years.
“The sell-off is purely linked to a shift in central bank policy – there are renewed concerns about a synchronized slowdown globally,” said Ross Mayfield, investment strategy analyst at Baird. regarding central banks around the world being more belligerent than expected.” Louisville, Kentucky.
“The Fed and other central banks are deliberately creating a slowdown, and with every day that this continues, the ability to hit the soft target they’re aiming for is getting harder and harder.”
Wells Fargo says the odds of a recession are now more than 50%, following the Fed’s decision. Other banks that have warned of an increased recession risk include Deutsche Bank and Morgan Stanley.
The benchmark index is down 22.9% so far and is in a bear market, while the Nasdaq Composite and S&P 500 are set to mark their 10th weekly decline in the past 11 weeks.
By midday, the Dow Jones Industrial Average was down 685.76 points, or 2.24%, to 29,982.77 and the S&P 500 was down 114.83 points, or 3.03%, at 3,675.16, with both Both indexes hit their lowest levels since January 2021.
The Nasdaq Composite fell 427.39 points, or 3.85%, to 10,671.77.
All 11 major S&P sectors fell, with the energy and consumer discretionary sectors falling 4.1% and 4.4%, respectively. The defensive sectors outperformed, with consumer staples down just 0.4%.
Among the major US banks, Wells Fargo led the loss with a 3.5% slide.
Retailer Walmart rose 0.8 percent, while Target fell 1.8 percent.
CBOE Volatility Index, also known as Wall StreetFear’s gauge, increased to 33.23 points.
Issues fell more than advancers by a ratio of 8.56 to 1 on the NYSE and 5.58 to 1 on the Nasdaq.
The S&P index recorded a 52-week high and 93 new lows, while the Nasdaq recorded six new highs and 670 new lows.

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