A day after the Federal Reserve raised interest rates to a historic low, US stocks plunged as more central banks around the world raised interest rates to curb inflation.
The Dow Jones Industrial Average fell more than 741 points to end down 2.4 points at 29,927.07, closing below 30,000 for the first time since January 2021.
Also Read: US Federal Reserve Announces Historic Interest Rate Hike; Wall Street stocks surge
The S&P 500 also fell 3.3% to close at 3,666.78 and the Nasdaq fell 4.1% to 10,646.10. The US Federal Reserve on Thursday announced a 75 basis point rate hike, the highest since 1994.
Watch: US Fed announces biggest interest rate hike since 1994
However, central banks in the UK and Switzerland also hiked rates to curb rising inflation, rekindling recession fears. The Swiss National Bank raised interest rates by 50 basis points for the first time in 15 years and the Bank of England raised rates for the fifth time since December by 25 basis points.
The UK is currently battling the highest inflation in 40 years, at 9%, as UK markets continue to be jittery, with London’s benchmark FTSE 100 closing down 3.1% .
The Bank of England said Britain’s economy would contract 0.3% in the second quarter after posting growth in the first quarter.
(With agency contributions)
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Post expires at 9:55pm on Sunday June 26th, 2022