Dow tumbles more than 1,000 points, Nasdaq falls 5% as inflation spooks investors

The New York Stock Exchange logo on the floor, Wednesday,

US stocks on Thursday ended sharply lower amid concerns that the Federal Reserve could further tighten monetary policy. The Fed had a day ago hiked the interest rate by 40 basis points to tame surging inflation, the biggest hike in two decades.

All three main Wall Street benchmarks — Dow Jones, Nasdaq and S& 500, surrendered gains made during a relief rally on Wednesday.

The Dow Jones Industrial Average declined 1,063.09 points or 3.12% to 32,997.97, its worst daily performance since October 2020.

The Nasdaq Composite dropped 647.17 points or 4.99%, to 12,317.69, its biggest one-day percentage decline since June 2020. It finished at the lowest since November 2020.

All the major technology stocks Alphabet, Apple, Microsoft, Meta, Tesla and Amazon slumped between 4.3% and 8.3%.

The S&P 500 lost 153.3 points or 3.56%, to 4,146.87. Only a few constituents of the S&P 500’s were in green one of which was Twitter.

Earlier on Wednesday, the US central bank had raised interest rates by half a percentage point.

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