US stocks fell 1,000 points, their worst in two years after the Fed raised interest rates by 0.5%.
The U.S. stock market suffered its biggest fall in two years after the Federal Reserve announced a one-time 0.5% rate hike in response to rising inflation.
The Dow fell more than 1,000 points, while the S&P 500 fell 3.6 percent, its biggest loss in two years, while the Nasdaq fell 5 percent, its worst since June 2020.
Stock Market Drops After Investors Sell It reflects the uncertainty and unease of investors over the economic threats facing the United States. From inflation at its highest in 40 years to the Fed’s work to curb the situation by raising interest rates.
After the Fed raised its short-term interest rate by 0.5% on May 4, which was no more than market expectations. But there are still concerns the Fed will raise interest rates again at its next meeting, although Fed Chairman Jerome Powell has reassured investors that. The Fed is not considering another three-quarter rate hike fears, however.
The situation with the stock market reflects investor unease. that what the Fed is doing will be enough to curb inflation without affecting the economy. which showed signs of a slowdown before entering a recession. Because in addition to inflation and rising interest rates Investors also face uncertainty about supply chain disruptions. including political tensions and the impact of the war in Ukraine as well
The S&P 500 fell 153.30 to 4,146.87, while the Nasdaq fell 647.16 at 12,317.69, while the Dow fell 1,063.09, or 3.1%, to 32,997.97.
Most of the global stock market indices fell, with the UK’s FTSE 100 closing +1.3% to 7,503.27, while Germany’s DAX -4.9% closing at 13,902.52, France’s CAC 40 -0.43%. at 6,368.40 points and the Euro Stoxx 50 index closed -0.76% at 3,696.63 points.
