Wall Street ends lower as global central banks raise rates
Stocks fell again on Thursday, deepening Wall Street’s losses for the week as central banks around the world hiked interest rates to fight inflation.
The S&P 500 fell 0.8%, its third straight drop. The benchmark index is down about 3% this week. The Dow Jones Industrial Average fell 0.4% and the Nasdaq composite lost 1.4%. The Russell 2000 index of smaller companies fell 2.3%, a sign that investors are worried about the economy. The major indexes are on pace for their fifth weekly loss in six weeks.
The latest wave of selling reflects concerns among investors that the Fed might have to get more aggressive than it has been signaling to get inflation under control, said Barry Bannister, chief equity strategist at Stifel. That scenario is unlikely if prices stabilize and fall, but it could take more than a year for that to play out, he said. “The question is, what’s the patience level for both the Fed and the market,” he said.
Central banks in Europe and Asia raised interest rates a day after the Federal Reserve made another big rate hike and indicated that more hikes were on the way.
The S&P 500 fell 31.94 points to 3,757.99. The
Dow lost 107.10 points to close at 30,076.68, while the Nasdaq finished down 153.39 at 11,066.81. The Russell slid 39.85 to 1,722.31.