Wall Street Reacts To Fed, Dow Drops 1,000 Points
U.S. stocks plunged Thursday on yesterday's news that the Federal Reserve would raise interest rates by half a point. Technology stocks saw a sharp drop, while long-dated Treasury yields rose to new highs.
The Dow Jones Industrial Average fell 1,063.09 points, or 3.12%, to 32,997.97 The S&P 500 dropped 153.25 points, or 3.56%, to 4,146.89, and the Nasdaq Composite was down 647.17 points, or 4.99%, to 12,317.69.
The downturn erased Wednesday's gains that saw the Dow jump 932 points, or 2.81%, the S&P 500 gain 2.99%, while the Nasdaq Composite jumped 3.19%.
On Wednesday, the Fed approved a half-percentage-point interest-rate increase to reduce inflation.
"Thursday's stock sell-off suggests that Wednesday's post-FOMC market action was a relief rally. We are still not out of the woods yet, as there is still too much uncertainty over how the Federal Reserve's actions will tame inflation without causing a recession," Zach Stein, chief investment officer of Carbon Collective, wrote in an email Thursday. "The concerns that triggered the stock market correction over the past few months, such as inflation, the Russia and Ukraine war and surging oil prices, are still with us and haven't been resolved yet."
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