The Dow Jones fell 200 points as recession fears persisted on Wall Street

Stocks fell on Friday morning as investors continued to sell into the end of the year on fears of a recession next year due to the Federal Reserve’s relentless interest rate hikes.

The Dow Jones Industrial Average lost 217 points, or 0.65%. The Standard & Poor’s 500 lost 0.6%, while the Nasdaq Composite fell 0.28%.

The sell-off was broad, with 10 of the 11 sectors of the S&P 500 trading in negative territory. The energy and real estate sectors recorded the largest declines in the broader market index. Each sector fell more than 2%.

Meanwhile, shares Adobe It excelled after the design software company reported fourth-quarter earnings and fiscal guidance that beat expectations. Shares rose 6%.

The moves come on the heels of a rough day for the markets. The Dow fell 764.13 points, or 2.25%, on Thursday, its worst daily performance since September. The S&P 500 and Nasdaq Composite fell 2.49% and 3.23%, respectively.

Disappointing retail sales report on Thursday It sparked investor concerns about slowing consumer spending amid rising inflation, a sign of a weak economy.

With these recent declines, the indices are preparing for a second consecutive week of losses. The S&P 500 is down more than 1% for the week and about 5% for the month of December as hopes of a year-end rally fade.

Trading can be particularly volatile on Friday with a large number of options set to expire. There are $2.6 trillion worth of index options set to expire, the highest amount “relative to stock market volume in nearly two years,” according to Goldman Sachs.

See also  New car sales decline with fewer chips, lower production, and lower inventories. Back to where they were in 1979

Stocks have been dropping this week in wake Raising the Fed interest rate by 50 basis points On Wednesday – the highest rate in 15 years. The central bank said it will continue to raise interest rates through 2023 to 5.1%, a larger figure than previously expected.

“After being so hopeful on the Fed pivot, stock traders are having indigestion [Wednesday’s] John Lynch, chief investment officer at Comerica Wealth Management, said the FOMC statement, which reiterated Jerome Powell’s “higher for longer” theme.

They will also be looking for any hints about future Fed policy from speakers John Williams, Michelle Bowman and Mary Daley. Investors are trying to gauge the pace of future rate hikes and the central bank’s view of the economy.

Leave a Reply

Your email address will not be published.