Yesterday saw major stock indices pull back sharply as the Dow Jones, S&P 500, & NASDAQ fell 3.12%, 3.56%, & 4.99%, respectively.
Investors are worried about persistent high inflation, rising interest rates, & China’s Covid lockdowns depressed sentiment. Although stocks rallied immediately after the Fed increased rates a couple of days ago, fear has struck investors again.
The NASDAQ was down bad…
The tech-heavy index suffered as household companies such as Amazon, Apple, Netflix, Microsoft & Alphabet all saw their shares down between 4% to 8%.
..& the S&P didn’t stand a chance
More than 90% of companies in the S&P 500 declined yesterday.
Why this matters
The Fed isn’t nearly done raising rates to fight inflation. The Central Bank is likely to raise rates another 0.50% in the next meeting, & may well raise them another 0.50% in the meeting after. Investors are expecting an economic slowdown, as well as fears of a recession.