© Xinhua
U.S.-NEW YORK-STOCK MARKET-FALL
NEW YORK (77WABC/AP) — Dow sinks 1,000, or 3%, as markets worry that the Fed’s plans to fight inflation with higher rates will slow the economy.
The Dow gave up its largest declines this year. The losses are just 24 hours after the market had its largest gains since 2020.
The reversal wiped out Wednesday’s euphoria after fed chair Jerome Powell said the board was not “actively considering” several additional rate hikes. The Dow and S&P 500 slid as investors reassessed the Fed’s comments. The Nasdaq fell five percent.
On Wednesday, the central bank ok’d a half-percentage-point interest-rate increase, lifting the federal-funds rate to a target range between 0.75% and 1%.
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